For a company having paid up share capital of Rs 6 crores but unlisted, is it neceaary to appoint full time company secretary. If it is not viable considering size of the company, what is alternative options?
Thanks Mukund M Honkan
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It is compulsory for a company whose paid up capital is Rs 5 Crore or more to appoint a whole time Company Secretary. It is to be appointed irrespective of fact whether a company is private company or public company; listed company or unlisted company. Exemption is available only to section 25 companies.
However, ROC may be infomred that all reasonable efforts werer made to appoint Company Secretary or that the financial position of the company is such that it was beyond its capacity to engage a whole-time secretary. In Such a case, exemption may be granted by ROC.
However, in that case, complince report would be required.
Alternatively, you can appoint a director who can also act as a company secretary. There is no bar on a director to be appointed as a secretary of the company. However, at least two director has to be only holding position of a director. Since, your's is a public company, second alternative is also possible.