Guide to Compliance Certificate (with Procedures)

By virtue of S. 383 A of the Companies Act, every company having a paid up capital of Rs 10 lac or more but less than Rs 2 crore needs to obtain a Secretarial Compliance Certificate from a Chartered Secretary. By way of this provision, many more companies have come under the net of secretarial verification. A Practising Company secretary (PCS) is required to verify that the company has made compliance with the provisions of the Companies Act, 1956 with respect to the 33 issues dealt with in the Compliance Certificate - each issue pertaining to some or the other aspect of the status/working of the company. This very lucid and well planned work explains in simple language and style, the various requirements of the Compliance Certificate. It has been designed keeping in view the requirements of both the companies as well as company secretaries. Every para of the Compliance Certificate has been discussed separately. A company may find detailed provisions and procedures to be followed to make required compliance under the Act, and can have a broader idea of significance of such compliance by looking at the penalty table which describes the liability a company may incur by not complying with the given provisions. A company secretary may find where he has to focus his verification, what all he is to verify, what documents he may ask the company for making required verification, and a few tips for drafting the Compliance Certificate. The Appendices contain the text of the various provisions of the Companies Act referred to in the book, and the text of selected Rules (including directions of RBI). Additionally some useful tables have been given such as 'Matters requiring Approval of Shareholders by Ordinary/Special Resolution', 'Specimen of Certificate' a Chartered Secretary may obtain from a Company.