SECRETARIAL AUDIT
Secretarial audit is done in order to verify the compliance of various legislation including the Companies Act and other corporate and economic laws applicable to the company.
SECRETARIAL AUDIT
Secretarial audit is done in order to verify the compliance of various legislation including the Companies Act and other corporate and economic laws applicable to the company.
In India, following companies are required to conduct secretarial audit and obtain secretarial audit report as per section 204 of the Companies Act 2013 read with Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:
- Every listed company
- Every public company having paid up share capital of 50 crore rupees or more or
- Every public company having*turnover of 250 crores or more
Applicability of Secretarial Audit in case of Private Limited Companies
Secretarial audit is not applicable in case of private limited companies as according to section 2 (71) of the Companies Act, 2013, public company is defined as which is not a private company and it has been interpreted from the definition that secretarial audit shall be applicable on the private company which is a subsidiary of a public company, and which fall under the prescribed class of companies.
Fraud in case of Non-Compliance
According to section 204(4) of the companies Act, 2013, in case company or any officer of the company or company secretary in practice contravene the provisions related to secretarial audit of the company, every officer of the company or company secretary in practice who is in default shall be punishable with the fine.