Through the article, let us seek your kind attention to the following mentioned parameters have been used many a time in the Companies Act 2013 (“the Act”) for compliance purpose. There are provisions in the Act to which compliances merely based upon the limits/ thresholds; which mainly financial numbers in nature. The word which marked very frequently to define any such limit includes “Turnover“, “Net-worth“, “Outstanding loan“, “Deposit“, “Number of shareholders/ deposit holders” etc.
As you are aware that the number of changes being taken place recently in the Act hardly has happened in the history of the Indian Company Law, accordingly, the roles & responsibilities of the professionals include In-house for the adherence to the applicable laws upon client company have also been increased over the period of time. The situation like professionals nowadays surrounded by an environment where they need to be cautious and active to remain in the industry.
However, there is one thing need to be get appreciated that the recognition and roles & responsibilities of the Company Secretaries get many folded with such changes. The business environment in India comes to a position where if someone is running a company or any other legal structure has to have remained in touch with the Company Secretary so as to enable smooth passage with the compliance requirements and to enable the businessman to keep their eye centered on business without any distraction or interferences from the government side.
But, there is one thing which also needs your attention with the change in time, despite, the increase in the role being occupied by a Company Secretary in a company or through own office, the criterion to appoint such professional remain based upon paid-up capital. In fact, this is a very good time that our regulatory environment getting filtered with the strikeout old laws and change in the existing enactments with a view to aligning the Indian economy with leading countries. The role of professionals may be in near time at higher stakes or would take a different picture.
As everyone knows that the Indian Company law used to define many other parameters for the compliances, accordingly, the appointment of professionals to ensure such compliances should also get stretched to other parameters over the period of time to unlock the opportunities.
In our opinion, It may be the one other way our Indian economy would uncover the many other opportunities by enabling the experts in compliances to occupy the position with the different sizes of the legal structure to avoid any collapses.
Corporate Governance 