Published On : Thu, Jan 4th, 2018

VIA urged President ICSI for simplified compliances for SME companies under the Companies Act, 2013

Nagpur: CS (Dr) Shyam Agrawal, President of The Institute of Company Secretaries of India had visited Vidarbha Industries Association and had a discussion on the various issues and policies governing the corporate sectors specially the small and medium enterprise. VIA President, Atul Pande, urged that ICSI being a premier body to regulate the corporate sectors should play pro active role in the corporate governance and ensure that the regulatory compliances are reduced for SME sector. Under the existing laws Companies are required to file various documents from time to time and non filing attracts penalties. Hence, it is suggested that SME’s are required to file only one form for the compliances under the Companies Act, 2013.

VIA also raised the issue of compulsory appointment of Company secretary in case of company having a paid up share capital of Rs. Five Crore of more. This limit is too small to justify the appointment of full time company secretary for unlisted companies. Since the Companies Amendment Bill 2013 propose to increased the limit to define small company from Rs. Five Crore to Rs. Ten Crore, it is requested that this limit be raised to 20 Crore. For non listed SMEs. ICSI President said that Company Secretary not only ensures that compliances under the Companies Act, but take care of the compliances under other economic legislations as principal officer. This ensure good governance, proper due diligence and help the company in its growth. So it is interest of the company to have a full time company secretary in employment, said Shyam Agrawal.

Regarding the current issues of the directors disqualification notices issued by the Ministry of Corporate Affairs, it has created a lot of inconvenience to the existing directorship. It is suggested that it should be applicable for the new appointment, without affecting the existing directorships.

During the discussion, ICSI President has mooted the idea that if the forms and returns are filed in time under the Companies Act, 2013, no filing fees need to be paid. He said that under the other laws like, Income Tax, GST etc, no filing fees are required if the return are filed in time. Similar provisions be made applicable under the Companies Act. Penal provisions are already there for defaulters for non filing of documents. This will encourage the compliances and Practising Company Secretaries may be helpful to the trade and industry for its timely compliances.

The ICSI President also touched upon the various amendments proposed in the Companies Amendment Bill 2017 to strengthen the corporate Governance standard, to improve ease of doing business in the country and initiate strict action against the defaulting companies.

Earlier, VIA President welcome Dr. Shyam Agrawal by offering the flower bouquet. Among those present in the meeting Omprakash Bagdia, Vice President – VIA, CS Ashish Garg, Central Council Member of ICSI, CS Pravin Soni, Secretary, WIRC of ICSI,CS Chanchal Loya, Chairperson – Nagpur Chapter, CS Piyush Kataria, CA Sachin Jajodia and members of VIA and ICSI.