Secretarial Audit is an audit to check the compliance of various legislations including the Companies Act and other corporate and economic laws applicable to the company. These laws are complex and non-compliances would attract major risk to company.
As per section 204, of the Companies Act 2013, following companies are required to obtain secretarial audit report from Practicing Company Secretary:
(i) Every listed Company.
(ii) Every public company having a paid-up share capital of fifty crore rupees or more; or.
(iii) Every public company having a turnover of two hundred fifty crore rupees or more.
WHO CAN CONDUCT SECRETARIAL AUDIT?
Only a member of the Institute of Company Secretaries of India holding certificate of practice (company secretary in practice) can conduct Secretarial Audit and furnish the Secretarial Audit Report to the company.
WHAT IS THE PENALTY FOR DEFAULT?
If a company or any officer of the company or the company secretary in practice, contravenes the provisions of this section, the company, every officer of the company or the company secretary in practice, who is in default, shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees.
Collect all information
Convene Board Meeting.
Discussion on resolution to be passed.
Voting for resolution.
Pass the board resolution.
File the requisite form if required.