What is The Effects of Company Act 2013 on CS Carrier?

These Days everyone is worried and urged several Question regarding Company Secretary Profession unexpectedly after the announcement of companies act 2013. Honestly, there is no much to bother about how we get jobs?is really CS Profession worthy?is really CS gets a job easily? like that question.

Please don’t think that CS carrier is only based on Company Law.There is different forms or dimension on CS carrier is based, like FEMA, SEBI, DEPOSITORY, LABOUR LAWS, SERVICE TAX, VAT and countless.So there is no need to worry.truly, I have seen many people on social sites like Facebook, Twitter etc. doing negative publicity about CS course. Only those people are worried who think- CS profession or cs job is Solely about ROC Related and Secretarial work.

There is various branches/Dimension of profession Foreign and International Law, Finance, and Taxation and importantly Legal.You can look opportunities beyond Companies Act.There is only a Sky is the limit for the CS Profession and the you know “limit is limitless”.

At Present 60-70% syllabus of CA, CS and CMA is same. The difference is of the depth of knowledge. But.nobody is stopping you from having the in-depth expertise of any of the subjects which are not “directly” related to your profession.

One of our Reader Asked-

Does Really Companies Act 2013 is Advantageous for Company Secretary?

Yes, of course, Company act 2013 enhance the scope of company secretary.
The Companies Act, 2013 has considerably enhanced the function and responsibilities of company secretaries both in employment and in practice. The company secretary is a key managerial person in a company, responsible for ensuring the adequate and competent administration of the company and certifying the company’s compliance with the provision of the Act.

Role and Need of Company Secretary under Companies Act 2013.

The present Companies Act 2013 has extended the role of company secretaries. Some of the key areas that have directly impacted the role of company secretaries in employment or in practice due to this Act are as follows:

Introduction of Secretarial Audit

Secretarial Audit is the means to check whether the company is adhering to the legal and procedural provisions and a process to observe the company’s compliance with the requirements of the stated laws. The purpose behind the introduction of the secretarial audit is to promote corporate governance and compliance.
According to Section 204 of the Companies Act 2013, it is the responsibility of the Company Secretary in practice to perform a secretarial audit of every listed company and any such other class of prescribed companies. The Central Government has prescribed such other class of prescribed companies as-

Every public company with a paid-up share capital of Rs. 50 Crore or more.
Every public company with a turnover of Rs. 250 Crore or more.

The objective of the formulation of secretarial standards is to integrate, harmonize and standardization of diverse secretarial practices. The Companies Act, 2013 under Section 118 has made the compliance of Secretarial Standards compulsory on the meeting of the Board of Directors and on general meetings.

Annual Return

Annual return is a complete document contains data regarding share capital, directors, shareholders, changes in directorships etc about the company. Under the old Companies Act of 1956, the annual return of the listed companies is required to be signed by the company secretary in practice. The new Companies Act, 2013 under Section 92 has broadened this requirement by providing that annual returns of companies having such paid up capital and turnover to be signed and certified by the company secretaries in practice.

Appointment of Whole-Time key Managerial Personnel

Under Section 203 of the new Companies Act, 2013, the companies have to compulsorily appoint the whole time Key Managerial Personnel in respect of a certain class of companies as prescribed by the Central Government to ensure healthy corporate governance and administration. The company shall have the following whole-time Key Managerial Personnel (KMP):

Managing Director.
Chief Executive Officer or manager and in their absence, a whole-time director.
Company Secretary.
Chief Financial Officer.

So this made the appointment of whole-time Company Secretary mandatory for better efficiency.

Functions of Company Secretary

According to Section 205 of the Companies Act, 2013 the Company Secretary shall execute following functions and duties, this is the first time that the duties of the company secretary have been specified in the company law:

To report to the Board on the compliance with the provisions of this Act.
To assure that the company complies with the applicable secretarial standards.
To cater to the directors of the company the guidance they require in discharging their duties, responsibilities, and powers.
To encourage the convening of meetings and attend Board, committee and general meetings and maintain the minutes of these meetings.
To obtain approvals from the Board, general meeting, the government and such other authorities as required under the provisions of the Act.
To assist the Board in the conduct of the affairs of the company.
To assist and advise the Board in ensuring good corporate governance and in complying with the corporate governance requirements

It fosters clarity, answerability and high standards of corporate governance
Identifies various new concepts especially corporate social responsibility and procedures which facilitate easiness in doing business.
Strengthens stricter action against fraud, cheating and noncompliance with company law provisions by introducing secretarial audit.

After Reading above Article You already Known That what changes have made and their effects on the carrier of company secretary.so don’t believe on the rumors that CS Profession is valueless or CS are not getting the job easily nowadays or Salary of a CS is very law in the Market.Just focus in your study and believe yourself.Only Sky is the limit.

Remember: We are Company Secretary, not a Company Law Secretary-Be clear in this case.

Thanks For Reading and Visiting.if you have any doubts, suggestion or feedback kindly let me know via your comment.its heartily welcomed.

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Sourav Pathak

A Guy Without a "Title". Good friends, Good Books, and a Sleepy Conscience: That's Sums of My life. I Love Making a Professional Acquaintances.Reach Out Me Through Facebook Button on Right Side of The Author Box.
I’m always interested in hearing from former colleagues, Students, or just interesting creative folk, so feel free to contact me if you’d like to connect.