NO legal requirement to appoint Company Secretary for Private Limited Companies
The Ministry of Corporate Affairs has notified Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 effective April 1, 2014.
These Rules makes it mandatory only for listed and public companies to appoint key managerial personnel (KMP) in case their paid up share capital is Rs 100 Million or more. KMP includes Company Secretaries (CS). Therefore there is no such mandatory requirement for private limited companies.
Thus only such above mentioned companies have to appoint CS. Private companies can voluntarily appoint though there is no legal requirement.
These Rules makes it mandatory only for listed and public companies to appoint key managerial personnel (KMP) in case their paid up share capital is Rs 100 Million or more. KMP includes Company Secretaries (CS). Therefore there is no such mandatory requirement for private limited companies.
Thus only such above mentioned companies have to appoint CS. Private companies can voluntarily appoint though there is no legal requirement.
CA SANJAY DEWAN
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