Private Companies with paid up share capital of Rs 10 crores or more to mandatorily have a whole-time company secretary

Ministry of Corporate Affairs notified the amended Companies (Appointment and Remuneration of Managerial Personnel) Rules i.e. the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2020.

ln the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2O14 (hereinafter referred to as said rules), for rule 8A, the following shall be substituted as under:-

“8A. Every private company which has a paid-up share capital of ten crore rupees or more shall have a whole-time company secretary.”

In the said rules, in Rule 9 of the said rules, in sub-rule (1),

(i) after clause (b), at the end the word “or” shall be inserted.

(ii) after clause (b), the following clause shall be inserted, namely:-

“(c) every company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more.”.

(iii) the following Explanation shall be inserted, namely:-

“Explanation:- For the purposes of this sub-rule, it is hereby clarified that 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.”.

Ministry of Corporate Affairs

[Notification dt. 03-01-2020]

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