Companies Act Section 2(25) Company Secretary In Practice

Company Secretary in Practice Section 2(25)

A "Company Secretary in Practice" is a professional, as defined by the Company Secretaries Act, 1980, who offers corporate law and governance services to the public for a fee.

Key Features and Role:

1. Independent Professional: 

A Company Secretary in Practice operates independently, offering expert advice and assistance in corporate governance, legal compliance, and regulatory affairs to various clients.

2. Scope of Services: 

Company Secretaries in Practice offer a wide range of services, including:

Corporate Governance: Advising on corporate governance practices and compliance with statutory requirements.

Legal Compliance: Ensuring compliance with the Companies Act, 2013, and other applicable laws.

Secretarial Audit: Conducting secretarial audit to verify compliance with laws and regulations.

Representation: Representing clients before regulatory authorities and government agencies.

Advisory Services: Providing strategic advice on corporate restructuring, mergers, acquisitions, and other corporate transactions.

Training and Education: Conducting training programs and workshops on corporate laws and governance practices.

3. Regulatory Compliance: 

Company Secretaries in Practice must adhere to the Code of Ethics prescribed by the Institute of Company Secretaries of India (ICSI), the professional body governing Company Secretaries. 

They are also subject to regulatory oversight to ensure compliance with professional standards and ethical practices.

4. Professional Indemnity: 

To protect clients and ensure accountability, Company Secretaries in Practice often carry professional indemnity insurance, which covers them against claims arising from errors, omissions, or negligence in the performance of their professional duties.

Qualifications and Appointment:

Qualifications: 

A Company Secretary in Practice must be a member of the Institute of Company Secretaries of India (ICSI) and hold a valid certificate of practice issued by ICSI. 

They undergo rigorous training, examinations, and continuing professional development to maintain their professional competence.

Appointment: 

Clients engage Company Secretaries in Practice by entering into a professional engagement agreement that outlines the scope of services, fees, responsibilities, and terms of engagement.

Importance:

1. Expertise and Specialization: 

Company Secretaries in Practice possess specialized knowledge and expertise in corporate laws, governance practices, and regulatory compliance, which are crucial for businesses to navigate complex legal and regulatory landscapes.

2. Compliance Assurance: 

By engaging Company Secretaries in Practice, businesses ensure adherence to legal requirements, mitigate risks, and enhance corporate governance practices, thereby promoting transparency and accountability.

3. Efficient Resource Utilization: 

Companies benefit from the professional services of Company Secretaries in Practice without the need to maintain a full-time in-house corporate secretarial department, thereby optimizing resources and operational efficiency.

Legal Framework and Compliance:

Professional Oversight: 

Company Secretaries in Practice are governed by the Company Secretaries Act, 1980, and regulations issued by ICSI. 

They must comply with ethical standards, professional conduct rules, and guidelines issued by regulatory authorities.

Continuing Professional Development: 

To maintain their certificate of practice, Company Secretaries in Practice must fulfill continuing professional development (CPD) requirements, including attending seminars, workshops, and courses to update their knowledge and skills.