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CS Professional · Compliance Management, Audit and Due Diligence · Legal Framework Governing Company Secretaries

Veda Advisory Private Limited, a company incorporated in India, begins offering services described as 'practising Company Secretaries' to its clients. Under the Company Secretaries Act, 1980 (Section 26), what is the legal position?

No company, whether incorporated in India or elsewhere, can practise as Company Secretaries. Section 26(1) imposes this bar without any exception for Council permission or for directors who are members, so Veda Advisory Private Limited cannot lawfully offer such practice.

  1. AThe company may practise if all its directors are members of the Institute in practice
  2. BThe company may practise if it obtains the Council's permission
  3. CNo company, whether incorporated in India or elsewhere, may practise as Company SecretariesCorrect
  4. DOnly a foreign-incorporated company is barred from practising

Explanation

Section 26(1) states that no company, whether incorporated in India or elsewhere, shall practise as Company Secretaries. There is no exception for permission or for directors being members. The bar covers Indian and foreign companies alike, so the option limiting it to foreign companies is wrong.

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