CMA Intermediate · Corporate Accounting and Auditing · Secretarial Audit
Under section 204, if a company secretary in practice contravenes the provisions of that section, what is the consequence for the secretarial auditor who is in default?
The company secretary in practice who is in default is liable to a penalty of two lakh rupees. Section 204(4) applies this penalty to the company, every officer in default and the secretarial auditor alike, so the auditor is not exempt from liability.
- ADisqualification from practice for five years
- BLiability to a penalty of two lakh rupeesCorrect
- CImprisonment for up to one year
- DNo consequence, as only the company and its officers are liable
Explanation
Section 204(4) provides that the company, every officer in default, or the company secretary in practice who contravenes the section is liable to a penalty of two lakh rupees. The auditor is expressly covered, so the option excluding the auditor is wrong.
Did you get it right without looking?
One question tells you little. A timed set on Secretarial Audit shows your real accuracy, how long you take and where you lose marks.
More Secretarial Audit questions
- A listed company and its company secretary in practice both contravene Section 204 by failing to comply with its requirements. As per the te…
- Aarav Pharma Ltd, a listed company, fails to annex a secretarial audit report to its Board's report. The company, its officers in default, a…
- Under Section 204 of the Companies Act, 2013, if a company contravenes the provisions of the section on secretarial audit, what is the conse…
- In a secretarial audit report, the company secretary in practice makes a qualification about delayed filing of a statutory return. What does…
- Which statement about section 204 and the duties of the Board and managerial personnel is correct under section 205(2)?
- Under section 204, which statement about the company's duty towards the secretarial auditor is correct?