- Compulsion for Secretarial Audit : Following classes of companies are required to appoint Secretarial Auditor for auditing the secretarial and related records of their companies:
- Every Listed Public Company; or
- Public Companies having a paid up capital of Rupees fifty crore or more; or
- Public companies having a turnover of two hundred fifty crore rupees or more.
[Section 204(1) & Rule No. 9(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
- Professional eligible to conduct Secretarial Audit: The Secretarial Audit shall be conducted by a Company Secretary in Practice who shall submit his Secretarial Audit Report to the Board.
- Company Secretary in Practice means a Company Secretary who is deemed to be in Practice under Section 2(2) of Company Secretaries Act, 1980 [Section 2(25)]
- Secretarial Auditor shall be appointed by passing a resolution in Board meeting and not by circulation. [Section 179(3)(k) read with Rule 8(4) of the Companies (Meetings of Board and its Powers) Rules, 2014]
The following procedure is to be followed for appointment of a Secretarial Auditor for issue of Secretarial Audit Report of the Company under Section 204 read with Rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014- Click Here