COMPANY SECRETARIES (AMENDMENT) ACT, 2006

Sun Feb 27 2022 | Banking and Insurance | Comments (0)

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Year : 2006

[Act, No. 8 of 2006]
[17th March, 2006]


PREAMBLE

An Act further to amend the Company Secretaries Act, 1980.

BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:-

Section -1 Short title and commencement

(1) This Act may be called the Company Secretaries (Amendment) Act, 2006.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint:

Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision.

Section -2  Amendment of section 2

In the Company Secretaries Act, 1980(56 of 1980) (hereinafter referred to as the principal Act), in sub-section (1) of section 2,-

(i) After clause

(a), The following clauses shall be inserted, namely:-

(aa) "Authority" means the Appellate Authority referred to in section 22A;

(aaa) "Board" means the Quality Review Board constituted under section 29A;

(ii) After clause

(g) The following clause shall be inserted, namely:-

(ga) "Notification" means a notification published in the Official Gazette;

(iii) After clause

(j) The following clauses shall be inserted, namely:-

(ja) "Specified" means specified by rules made by the Central Government under this Act;

(jb) "Tribunal" means a Tribunal established under sub-section (1) of section 10B;

Section -3  Amendment of section 4

In section 4 of the principal Act, for sub-section (3), the following sub-section shall be substituted, namely:-

(3) Every person belonging to any of the classes mentioned in clauses (c), (d) and (e) of sub-section (1) shall have his name entered in the Register on application being made and granted in the prescribed manner and on payment of such fees, as may be determined, by notification, by the Council, which shall not exceed rupees three thousand:

Provided that the Council may with the prior approval of the Central Government, determine the fee exceeding rupees three thousand, which shall not in any case exceed rupees six thousand.

Section -4 Amendment of section 5

In section 5 of the principal Act, for sub-section (3), the following sub-section shall be substituted, namely:-

(3) A person, being an Associate who has been in continuous practice in India as a Company Secretary for at least five years and a person who has been an Associate for a continuous period of not less than five years and who possesses such qualifications or practical experience as the Council may prescribe with a view to ensuring that he has experience equivalent to the experience normally acquired as a result of continuous practice for a period of five years as a Company Secretary shall, on payment of such fees, as may be determined, by notification, by the Council, which shall not exceed rupees five thousand, and on application made and granted in the prescribed manner, be entered in the Register as a Fellow:

Provided that the Council may with the prior approval of the Central Government, determine the fee exceeding rupees five thousand, which shall not in any case exceed rupees ten thousand.

Explanation I.- For the purposes of this sub-section, a person shall be deemed to have practised in India for any period for which he has held a certificate of practice under section 6, notwithstanding that he did not actually practise during that period.

Explanation II.- In computing the continuous period during which a person has been an Associate of the Institute, there shall be included any continuous period during which the person has been an Associate of the dissolved company immediately before he became an Associate of the Institute.

Section -5 Amendment of section 6

In section 6 of the principal Act,-

(i) for sub-section (2), the following sub-section shall be substituted, namely:-

(2) A member who desires to be entitled to practise shall make an application in such form and pay such annual fee, for his certificate as may be determined, by notification, by the Council, which shall not exceed rupees three thousand, and such fee shall be payable on or before the 1st day of April in each year:

Provided
that the Council may with the prior approval of the Central Government, determine the fee exceeding rupees three thousand, which shall not in any case exceed rupees six thousand.

(ii) After sub-section (2), the following sub-section shall be inserted, namely:-

(3) The certificate of practice obtained under sub-section (1) may be cancelled by the Council under such circumstances as may be prescribed.

Section -6  Amendment of section 9

In section 9 of the principal Act,-

(i) For sub-section (2), the following sub-section shall be substituted, namely:-

(2) The Council shall be composed of the following persons, namely:-

(a) Not more than fifteen persons elected by the members of the Institute, from amongst the Fellows of the Institute chosen in such manner and from such regional constituencies as may be specified:

Provided that a Fellow of the Institute, who has been found guilty of any professional or other misconduct and whose name is removed from the Register or has been awarded penalty of fine, shall not be eligible to contest the election,-

(i) In case of misconduct falling under the First Schedule of this Act, for a period of three years;

(ii) In case of misconduct falling under the Second Schedule of this Act, for a period of six years,from the completion of the period of removal of name from the Register or payment of READ MORE

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