More than 250 members and Students had come for this meeting. We organized a signature campaign and all the members & students assembled there signed it.
We then went to meet ROC & Regional Director at Shastri Bhawan. We submitted a copy of the petition to them.
The copy of the petition given is given below.
***************
4th April, 2014
Mr. Naved Masood IAS
Secretary to Government of India,
Ministry of Corporate Affairs
Shastri Bahavan,
New Delhi 110 001
Dear Sir,
Sub: Representation about KMP Rules notified by Ministry of Corporate Affairs.
Ministry of Corporate Affairs has recently notified 282 Sections
and related Rules. The KMP Rules released by MCA on 31st March
has shocked the Company Secretary fraternity across India.
The KMP Rules are making it mandatory to have Company
Secretaries only for 7000 companies. This will adversely affect the compliance
with applicable laws, Secretarial Standards and governance norms, etc., of the
Companies which are excluded in the above notification. Also, it will
affect the livelihood of members of ICSI.
If the Rules are implemented as such, the life of more than
4,00,000 students who have registered for this course will be at jeopardy. They
have taken this course based on the earlier law which provided all Companies having
more than 5 crore paid up capital need to have a Company Secretary. Now if the
Government takes it back, they will feel let down and face an insecure future.
The Companies Act, 2013 has increased the compliance requirement
of all the Companies including Private Limited Companies. But it is surprising
that it has done away with the requirement of having a Company secretary for
Private Limited Companies and for Public Limited Companies having less than
Rs.10 Crores share capital. While the intention of the law is for
increased Compliance for all Companies, it is sad that the Rules are not
reflecting it.
Further, Rule under Section 204(1) mandate to have secretarial
audit. But out of approximately 13 lakh Companies registered in India, less
than 1% of the Companies alone would get covered by Secretarial audit, as
Private Limited Companies are completely exempt from Secretarial audit.
We are not sure how the Government will ensure compliance in other Private
Limited Companies having more loans, turnover, etc which also will require lot
of compliance.
Further ministry has done away with precertification which was
introduced after detailed deliberations. As a consequence, authentic
information would not be available promptly to stakeholders and this would also
drastically reduce the utility of MCA 21.
The Company Secretaries who are the knowledgeable professionals
can do a thorough verification and can thereby reduce the risk for the
Directors, who are professionals, but since they do not have expert knowledge
in this regard, can make mistakes in filling and filing the important
information in the Forms. Further it will also increase the work load of ROC
offices to a great extent and can reduce its efficiency.
Please find enclosed the representations submitted by our
President to Ministry of Corporate Affairs.
We the undersigned members, request you to please consider the
said representation and make the necessary changes as mentioned in the attached
petitions and ensure compliance of all Acts which needs to be followed by the
Companies and also to save our profession.
***********
We have sent the petition copy signed by us to Secretary, Ministry of Corporate Affairs by Speed post along with photos taken today.
Being the first meeting, it was organized without writing a single mail or SMS to any member and please purdon us for not informing about this meeting in advance.
We sincerely thank each one of the member & student who came and shared their emotions and anger.
Going forward, our meetings will be conducted after informing through mail and FB.
CS across India need to be together and voice our concern and ensure that KMP Rules are changed.
We will not rest until these Rules are changed.
We will not rest until these Rules are changed.
CS members: we are fighting for your and our liveli hood.. Please be with us & support this noble cause...
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