1Professor and Head, Department of Corporate Secretaryship, School of Management, Alagappa University, Karaikudi
2Ph. D. Research Scholar, Department of Corporate Secretaryship, School of Management, Alagappa University, Karaikudi
Online published on 5 December, 2019.
Secretarial Audit is a compliance audit. It is a part of total compliance management in an organization. The Secretarial Audit is an effective tool for corporate compliance management, done by an independent professional and it helps to ensure timely corrective measures when non-compliance is detected and the same is done by verification of records and documents to check compliance with the provisions of various laws and rules/procedures, maintenance of books, records etc., to ensure that the company has complied with the legal and procedural requirements and also followed due processes. The objective of the Audit is to protect the interests of the customers, employees, revenue, environment and the directors and officers of the company and to avoid any unwarranted legal actions by the law-enforcing agencies and other persons as well. As per the section 204 of the Companies Act 2013, and as per Rule 9 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, all listed Companies and every public company having a paid up capital of fifty crore rupees or more or every public company having a turnover of two hundred and fifty crore rupees or more shall have the Secretarial Audit done by a Company Secretary in practice. The corporate sector is governed by a complex web of laws, rules and regulations. Several companies that have fallen sick had committed violations of various legal provisions and shown utter disregard for the various Board and other processes contemplated in the Companies Act.
Companies Act, Secretarial Audit, Compliance management, Auditor, Company
