The Institute of Company Secretaries of India is a statutory professional body under an act of Parliament of India i.e., Company Secretaries Act, 1980 with the objective of promoting and developing the profession of company secretaries in India. It is headquartered in New Delhi and has four regional offices at New Delhi, Chennai, Kolkata and Mumbai.
By seeing the companies and need of companies’ secretaries of the country, the government of India has enacted the Companies Secretaries Act, 1980. This enactment was done to make provisions for the formation and regulation of companies’ secretary and for matters connected therewith or incidental thereto. This Act is applicable to whole of India including the State of Jammu and Kashmir. Section 1 of the Act states about the jurisdiction of this Act.
The Companies Bill, 2011, was introduced with their importance in corporate operations is significantly increased. As per Clause 2(51) of the Bill, the definition of “Key managerial persons” includes a company secretary apart from the MD, CEO, and CFO.
The Author, Mitali Tiwari is a student of 5th Year, BA.LLB, Law College Dehradun,Uttaranchal University. She is currently interning with LatestLaws.com.
Ans. Companies Secretaries Act comes into force on such date as the Central Government may, by notification in the official gazette appoint. The act came into force on 1st day of January, 1981 as the Companies Secretaries Act, 1980
Q2. What is Companies Secretaries Act?
Ans. An Act to make provision for the regulation and development of the profession of Company Secretaries. This Act basically governs the Company Secretaries. Sec 2(b) defines Company Secretary Means a person who is a member of the Institute.
Q3. What is Constitution of the Council of the Institute?
Ans. Sec 9 of the Act talks about Council of the Institute is made for the management of the affairs of the Institute and for discharging the functions assigned to it by or under this Act. The Council shall be composed of following persons:
- Not more than 15 persons elected by the members of the Institute.
- Not more than 5 persons nominated in specified manner by Central Government.
Q4. Which members will be known as Company Secretaries?
Ans. Sec 7 talks about the Company Secretaries it says that every member of the Institute in practice shall and other members may use the designation of the post and no member using such designation shall use any other description whether in addition or in substitution.
Q5. What are the functions of the Institute?
Ans. The functions are as follows:-
- The examination of candidates for enrolment.
- The regulation of training of institute.
- The maintenance and publication of a Register of persons qualified to practice as Company Secretaries.
- Collection of fees from members, examines and other persons.
- Subject to the orders of the appropriate authorities under this Act, the removal of names from the Register and the restoration to the Register of names which have been removed.
- The maintenance of a library and publication of books and periodicals relating to management of companies and allied subjects.
- The conduct of election to the Council of the Institute.
- The granting or refusal of certificates of practice as per guidelines issued by council.
About 30 Years ago, Company Secretaries was the most valued professions. The brand new avenue was created for commerce students, the Company Secretaries Act, 1980 came in with the intention of academically and professionally structuring the role of a Company Secretary in a company.
Instead the name, the role of a Company Secretary is not a clerical or secretarial one in the usual sense. In fact, a Company Secretary is typically a senior managerial person in the corporate structure ensuring efficient administration of the Company and certifying the company’s compliance with the provisions of the Act. A Company Secretary helps the company to comply with the Act, avoiding failures to comply which can be very debilitating