In the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2O14 (hereinafter referred to as said rules), for rule 8, it was stated that, “Every listed company and every other public company having a paid-up share capital of ten crore rupees or more to have a whole-time key managerial personnel.”
Vide Notification Dated 3 Jan 2020 Ministry of Corporate Affairs as made it mandatory to have a whole-time company secretary for every Private Limited Company that has a paid-up capital of Rs 10 Crore or more. This rule is effective from 1st Apr 2020.
As per data from InstaFinancials, count of companies that have paid-up capital of 10 Crore and above
- 25,859 – All Companies
- 13,813 – Private Limited Companies
- 12,046 – Public Limited and other companies
These 13,813 Private Limited Companies are expected to appoint a whole-time company secretary effective from 1 Apr 2020 if they don’t have one.
Companies that have Outstanding Loan or Borrowings from banks or Public Financial Institutions exceeds Rs 100 crore has been mandated to submit the Secretarial Audit Report vide the inclusion of Rule No: (9) C. Such companies are mandated to submit the Secretarial Audit Report in prescribed format (the Form MR.3).
Prior to this notification or amendment, only the following companies were mandated to submit the Secretarial Audit Report
(a) every public company having a paid-up share capital of fifty crore rupees or more; or
(b) every public company having a turnover of two hundred fifty crore rupees or more.
As per the notification, the paid-up share capital, turnover, or outstanding loans or borrowings as the case may be, existing on the last date of the latest audited financial statement shall be taken into account.