08 secretarial standards a new requirement for companies

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Article Secretarial Standards - A New Requirement for Companies There is a clear need to bring in uniformity in secretarial matters just as the need was felt earlier to standardize the accounting treatments by having in place accounting standards on different topics. The introduction of Secretarial Standards 1 and 2, to start with, has thus been timely and appropriate . Subhasis Mitra*, FCS Group Company Secretary CESC Ltd., Kolkata [email protected] INTRODUCTION T he Companies Act, 2013 has made it compulsory now for every company to observe the two secretarial standards with respect to general meetings and board meetings. The Standards to be effective from 1 July, 2015 are said to have been mandated in India for the rst time in the world, so it is indeed a signicant development. COMPANIES ACT, 2013 The Companies Act, 2013 brought in to replace the earlier Companies Act of 1956 has introduced many new concepts, fresh requirements and additional compliances. A new legislation always has grey areas. This is especially true when it replaces a statute in place for almost six decades. When the new Act rst came in, there were many areas of concern. Some provisions were not clear. Implementing some provisions was considered not practicable. In certain instances, there were contradictions. As always, the transitional phase added to the confusion. Many notications have since been issued by the Ministry of Corporate Affairs (MCA), Government of India. Certain provisions have been *Member SSB of ICSI, 2015. 53 May 2015

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