A secretarial audit is an examination or analysis done to verify the compliance of various legislations including the Companies Act and other corporate and economic laws applying to the company. 

Sections and Rules Applicable

Section 204(1) of the Companies Act, 2013 read with rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Rule 8 of the Companies (Meetings of Boards and its Powers) Rules, 2014. 

What companies are required to conduct Secretarial Audit?

As per section 204 of the Companies Act, 2013 read with Rule 9 of the Companies Rules, 2014, there are certain companies in India that are required to hold a secretarial audit:

• All the listed companies;

• All the public companies with the paid-up share capital of Rs. 50 crores or more; and

• All the public companies with the turnover of Rs. 250 crores or more.

E-Form required for secretarial audit

E-form MGT-14 is required to be filed with Registrar of Companies (ROC) for the Board Resolution for the appointment of the Secretarial Auditor. The E-form must be filed within a time period of 30 days from the date of appointment. 

 

In case, the company secretary in practice or any officer of the company violates the provisions related to the secretarial audit of the company, every officer of the company or company secretary in practice who is in default shall be subject to heavy penalty.

 

In case, you have any more concern regarding the Secretarial Audit, then contact Enterslice. We have a team of experts to help you with all your doubts and confusions.