Companies LawLegal Updates

MCA notifies Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2020

MCA Update

MCA has amended Companies (Appointment and Remuneration of Managerial Personnel) Rules, 

wherein under Rule 8 which states Appointment of Key Managerial Personnel has amended. Under the amended Rules, Rule 8A has been substituted which directs that, 

“Every private company which has a paid up share capital of ten crore rupees or more shall have a whole-time company secretary.”

Thereafter, under amended Rule, Rule 9 (c) has been inserted wherein for the purpose of Section 204 (1) of Companies Act, 2013 every company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more is required should follow format of the Secretarial Audit Report as per Form No.MR.3. In addition, Explanation has been also inserted which states as below : 

“ For the purposes of this sub-rule, it is hereby clarified that the paid up share capital, turnover, or outstanding loans or borrowings as the case may be, existing on the last date of latest audited financial statement shall be taken into account.”

Click here to read Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2020MCA notifies Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2020

http://www.mca.gov.in/Ministry/pdf/AmdtRules_06012020.pdf

 

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