Companies required to appoint a Company Secretary and Secretarial Audit- New Rules dated 3rd January 2020

MCA amends limits for appointment of CS and Secretarial Audit

Happy New year 2020!

Amendment in Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (the Rules)
Substituted	Rule 8A
Amended	Rule 9
Date of notification	3rd January 2020
Date of effect	1st April 2020
Rule 8A Prior	Appointment of Company Secretaries for all  the companies not covered under Rule 8(1) and having a paid up share capital of Five Crore INR or more
Rule 8A After amendment	Post amendment every private company which has a paid-up share capital of Ten Crore INR or more shall have a whole-time company secretary. The following companies are mandatorily required to appoint a whole-time Company Secretary: 1)    Listed Company, 2)    Unlisted Public Company having paid-up share capital of INR 10 Crore or more, 3)    Private Company having paid-up share capital of INR 10 Crore or more.
Rule 9 Prior	Secretarial Audit Report Every listed company and companies belonging to such other class shall annex a Secretarial Audit Report, given by a Practicing Company Secretary, with its Board Report. Such other class of company which are required to comply with this provision are given in Rule 9 of the Rules Such class of companies were: – 1)    Every public company having a paid-up share capital of fifty crore rupees or more, or 2)    Every public company having a turnover of two hundred fifty crore rupees or more;
Rule 9 Post amendment	After amendment, one more class of companies have been added and now the following companies are mandatorily required to conduct a Secretarial Audit: 1)    Every public company having a paid-up share capital of fifty crore rupees or more; or 2)    Every public company having a turnover of two hundred fifty crore rupees or more; or 3)    Every company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more.