The biggest asset of the Company is to be in line and up to date with all the compliance applicable to a Company. The long-term business growth of a Company depends upon its Corporate Governance practices which are achieved by complying with all the applicable laws. The term Company Secretarial Compliance or corporate secretarial compliance is a comprehensive term which includes all the compliance, from basic to the complex in nature, to be taken care of under Indian Company Law which may be summarized below:
1. Conducting Board Meetings & General Meetings along with the drafting of documents relating to pre and post meeting formalities.
2. Minimizing the proceedings of the meetings held and maintaining the minutes thereof.
3. Preparation of Annual Report of the Company comprising of Directors’ Report, Extract of Annual Return & other applicable Annexures thereto.
4. Filing of Annual Return & Financial Statements of the Company with the Registrar of Companies in Form MGT-7 & AOC-4 respectively.
5. Maintenance of Statutory Books & Registers as per the provisions of Companies Act, 2013.
6. Need based consultancy related to routine affairs of the Company over phone & emails as and when required.
Complying with the applicable laws in letter & spirit keeps the organisation safe from all kinds of hefty penalties of the non-compliances
Being up to date in all kinds of required government filings helps in avoiding the cost of unnecessary Additional or Late filing fees.
An organisation with no “defaulting or non-compliant status” builds its goodwill in the market.
Annual Secretarial compliances means compiling the accounts of the current financial year and comparing the same with previous year to analyse the financial status of the company.
Yes, the annual secretarial compliances are the mandatory requirements as the non compliance lead to violation of Companies Act and imposes heavy penalty. Even non compliance for a continous two financial year may also lead to striking off the name of the Company by registrar on suo motu basis.
No, a newly incorporated company may not close its first financial in the same year of its incorporation if the Company is incorporated on or after 1st Jan of that year.
Two meetings are required to be conducted:
AGM can be held either at the registered office of the company or at some other place within the city, town or village in which the registered office of the company is situate and in case an unlisted company may be held at any place in India if consent is given in writing or by electronic mode by all the members in advance.
BM can be held anywhere in India or outside India provided the quoram of the meeting is physically present.
As per Companies Act the BM which is required to be held for finalizing the accounts can,t be held through video conferencing.
Yes the Companies Act provide the provision for holding both the meetings at shorter notice. In case of AGM if the consent by not less than ninty-five per cent. of the members is recieved and in case of BM subject to the condition that at least one independent director, if any.