2018 (4) TMI 1865 - HC - Companies Law

Permission to engage four qualified company secretaries for appointment of Company secretaries and Trainee Company secretaries as approved by this Hon ble Court for a period of one year which can be further extended up to three years - HELD THAT - Considering the fact that fees/salary/remuneration for the Company secretaries were fixed before nine years, the recommendations of the Selection Committee to increase the fees/salary/remuneration of the Company secretaries as well as the Trainee Company secretaries could be accepted and therefore, the Official Liquidator is permitted to increase and pay the fees/salary/remuneration for the Company secretaries at ₹ 25,000/per month and ₹ 10,000/per month for Trainee Company secretaries. The Official Liquidator is permitted to make such payment of fees/salary/remuneration from the fund available with the office of Official Liquidator under the head of Company paid staff salary reserve fund . Report disposed off.

Summary

Issues involved:
1. Permission to engage company secretaries and trainee company secretaries.
2. Increase in remuneration for company secretaries and trainee company secretaries.

Analysis:

Issue 1: Permission to engage company secretaries and trainee company secretaries

The Official Liquidator requested permission to engage four qualified company secretaries and trainee company secretaries based on a selection process conducted by a committee. The selection committee, comprising the Official Liquidator, Deputy Registrar of the High Court, and a member of the Institute of Company Secretaries of India, selected the candidates based on qualifications, skills, and expertise. The report highlighted the increasing workload and the necessity to appoint additional company secretaries and trainee company secretaries for the smooth functioning of the office. The selection process involved issuing a vacancy circular, receiving applications, conducting interviews, and shortlisting candidates based on merit. The successful candidates and those on the waiting list were identified with their marks scored during the interview. The Court, after reviewing the report and minutes of the selection committee, granted permission to engage the selected candidates and operate the waiting list if needed.

Issue 2: Increase in remuneration for company secretaries and trainee company secretaries

The report mentioned that the fees structure for company secretaries and trainee company secretaries had not been revised for nine years. The Selection Committee recommended increasing the fees/salary/remuneration for company secretaries from ?20,000 to ?25,000 and for trainee company secretaries from ?7,500 to ?10,000 per month. The Court accepted the recommendation considering the time elapsed since the last revision and permitted the Official Liquidator to increase and pay the revised fees/salary/remuneration from the available fund. The Official Liquidator was directed to make payments from the 'Company paid staff salary reserve fund.' The report was disposed of after these decisions were made.

This judgment from the Gujarat High Court addressed the requests of the Official Liquidator regarding the engagement of company secretaries and trainee company secretaries, as well as the increase in their remuneration, ensuring compliance with due procedure and considering the workload and necessity for additional staff in the office.