The Ministry of Corporate Affairs has issued the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2020, vide Notification dated 3 January, 2020. The Amendment substituted rule 8A to provide that every private company which has a paid up share capital of ten crore rupees or more shall have a whole – time company secretary.
The amendment added sub-rule C to Rule 9, thereby mandating that every company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more, shall annex with its Board’s report a secretarial audit report given by a company secretary in practice, made in Form No. MR.3.
Explanation to the sub-rule provides that, for the purposes of this sub-rule, the paid up share capital, turnover, or outstanding loans or borrowings as the case may be, existing on the last date of latest audited financial statement shall be taken into account.
Click here to read the Amendment.
