Ministry of Corporate Affairs vide a notification dated 3rd January, 2020 has made following amendments in the Companies (Appointment and Remuneration of Managerial Personnel) Rules,2014:
Every private company which has a paid-up share capital of Rs. 10 Crores or more shall have a whole -time company secretary (CS).
Earlier norms required every private company with a paid-up share capital of Rs.5 crores or more to appoint a whole -time CS. Thus, for appointment of a CS, the paid-up share capital requirement for a private company has been increased from Rs.5 Crores to Rs.10 Crores.
A new rule has been inserted which says that “every company having outstanding loans or borrowings from banks or public financial institution of Rs. 100 Crores or more is required to undergo Secretarial Audit”.
Earlier, only the public companies having a paid-up share capital of Rs. 50 Crores or more or turnover of Rs. 250 Crores or more were required to undergo Secretarial audit.
Source: MCA|Notification-[F.No.01/05/2013-CL-V-Pt-I]
