Companies secretarial audit is mandatory
Companies secretarial audit is mandatory, The requirement for secretarial audits varies across jurisdictions, and the specific companies for which it is mandatory depend on the applicable laws and regulations.
However, here are some common scenarios where secretarial audit is typically mandated:
1. Listed Companies:
In many countries, listed companies are required to undergo secretarial audit. Stock exchanges and securities regulatory authorities often impose this requirement to ensure compliance with corporate governance standards, disclosure requirements, and adherence to listing rules.
2. Public Companies:
Public companies, which are companies that have issue shares to the public, may be subject to mandatory secretarial audit. This is to ensure proper compliance with regulatory requirements, transparency, and accountability to shareholders and the public.
3. Companies with Paid-Up Capital Threshold:
Certain jurisdictions have provisions that require companies to conduct secretarial audit based on their paid-up capital. For example, in India, companies with a specified threshold of paid-up share capital are require to undergo secretarial audit as per the Companies Act, 2013.
4. Companies with Multiple Subsidiaries:
In some jurisdictions, companies with multiple subsidiaries or group structures may be mandate to undergo secretarial audit. This is to assess compliance across the group entities and ensure adherence to legal and regulatory requirements.
5. Companies in Regulated Industries:
Companies operating in highly regulated sectors such as banking, insurance, financial services, and non-banking financial companies (NBFCs) may be require to undergo secretarial audit as part of sector-specific regulatory compliance.
It’s important to note that the specific applicability and thresholds for secretarial audit may differ base on the laws and regulations of each jurisdiction. It is advisable to consult the applicable company laws.
Regulations, and corporate governance guidelines of the relevant jurisdiction to determine the mandatory secretarial audit requirements for specific types of companies. Seeking guidance from legal professionals or corporate secretarial experts can provide accurate and up-to-date information regarding the requirement for secretarial audit.
To visit: https://www.mca.gov.in/
