The provisions relating to appointment of company secretary, procedure of appointment, company law compliances and the penalty leviable for non compliances of the same are provided below:

Provisions of Appointment:

Every listed company having paid up share capital of not less than Rs.5 crore is obligatory required to appoint a whole time secretary. In case the share capital exceeds Rs.10lakhs but less than Rs.5 crores, then it is mandatory to file compliance certificate which is to be obtained from a Secretary in whole – time practice.

Procedure of Appointment:

• Convene a board meeting and pass a resolution appointing the secretary and approving the terms and conditions of his appointment.
• The interest of directors should be mandatorily disclosed as required.
• Every secretary so appointed should notify about his appointment to other companies in which he is a director, managing director, manager or secretary within twenty days of his appointment.
• File E-Form 32 with the concerned ROC within thirty days of the appointment after paying the requisite fees.
• The Compliance Certificate is to be filed with ROC in e – form 66 as an attachment. It is to be digitally signed by the managing director or manager or director or secretary of the company.

Penalty

If a company fails to comply with the above requirement, the company and every other officer in default will be punishable with fine upto Rs.500 for every day till the default continues.

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