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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Empowerment of the Company Secretary Profession

Vidya Learning Pvt Ltd, a coaching firm in Pune, starts issuing a 'Diploma in Company Secretaryship' to its students and describes the holders as having competence similar to that of a member of the ICSI. Under Section 25 of the Company Secretaries Act, 1980, which act is prohibited?

The prohibited act is awarding a diploma or designation that purports to show competence in Company Secretaryship similar to an ICSI member's. Section 25(1)(b) bars this. Coaching, selling study material or employing members is not covered by that clause.

  1. AAwarding a diploma or designation that purports to indicate competence in Company Secretaryship similar to that of an ICSI memberCorrect
  2. BConducting coaching classes for students preparing for ICSI examinations
  3. CCharging fees for study material prepared by the firm
  4. DEmploying a member of the ICSI as a faculty member

Explanation

Section 25(1)(b) bars any person from awarding a degree, diploma or certificate, or bestowing a designation, that purports to indicate a qualification or competence in Company Secretaryship similar to that of an ICSI member. Coaching, charging fees and hiring members are not prohibited by this provision.

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