Appointment of Company Secretary in Companies

The provisions relating to appointment of company secretary, procedure of appointment, company law compliances and the penalty leviable for non compliances of the same are provided below:
Provisions of Appointment:
Every listed company having paid up share capital of not less than Rs.5 crore is obligatory required to appoint a whole time secretary. In case the share capital exceeds Rs.10lakhs but less than Rs.5 crores, then it is mandatory to file compliance certificate which is to be obtained from a Secretary in whole – time practice.
Procedure of Appointment:

• Convene a board meeting and pass a resolution appointing the secretary and approving the terms and conditions of his appointment.
• The interest of directors should be mandatorily disclosed as required.
• Every secretary so appointed should notify about his appointment to other companies in which he is a director, managing director, manager or secretary within twenty days of his appointment.
• File E-Form 32 with the concerned ROC within thirty days of the appointment after paying the requisite fees.
• The Compliance Certificate is to be filed with ROC in e – form 66 as an attachment. It is to be digitally signed by the managing director or manager or director or secretary of the company.

Penalty
If a company fails to comply with the above requirement, the company and every other officer in default will be punishable with fine upto Rs.500 for every day till the default continues.