Rule 2 - Appointment, etc., of whole-time secretary. - Companies (Appointment and Qualifications of Secretary) Rules, 1988

02. Appointment, etc., of whole-time secretary. (1) Every company having a paid-up share capital of not less than rupees [1] [two crores] shall have a whole-time secretary. (2) No person shall be appointed as whole-time secretary under sub-rule (1) unless he is a member of the Institute of Company Secretaries of India constituted under the Company Secretaries Act, 1980 (56 of 1980). (3) A company having a paid-up share capital of less than rupees [2] [two crores] may appoint any individual as its whole-time secretary to perform the duties of a secretary under the Companies Act, 1956, and any other ministerial or administrative duties: Provided that no individual shall be eligible to be so appointed unless he possesses one or more of the qualifications specified in sub-rule (4): [3] [Provided further that a company with its registered office and corporate office and works situated in towns with a population of less than one lakh in accordance with census of India 2001 report and having a paid-up share capital of rupees two crores or more but less than rupees five crores, may appoint any individual, who possess any one or more of the qualifications specified in clauses (i) to (x) of sub-rule (4) as its whole-time secretary to perform the duties as such under the Companies Act, 1956 (1 of 1956): Provided also that if a company having a paid-up share capital of rupees two crores or more but less than rupees five crores shifts either its registered office or corporate office or works from towns with a population of less than one lakh in accordance with census of India 2001 report, it shall appoint a person as a whole-time secretary under sub-rule (1).] (4) No individual shall be appointed as secretary pursuant to sub-rule (3) unless he possesses any one or more of the following qualifications, namely: (i) membership of the Institute of Company Secretaries of India constituted under the Company Secretaries Act, 1980 (56 of 1980); (ii) pass in the Intermediate examination conducted either by the Institute of Company Secretaries of India constituted under the Company Secretaries Act, 1980 (No. 56 of 1980), or by the earlier Institute of Company Secretaries of India incorporated on 4th October, 1968, under the Companies Act, 1956 (1 of 1956), and licensed under section 25 of that Act; (iii) Post-graduate degree in commerce or corporate secretaryship granted by any university in India; (iv) degree in law granted by any university; (v) membership of the Institute of Chartered Accountants of India constituted under the Chartered Accountants Act, 1949 (38 of 1949); (vi) membership of the Institute of Cost and Works Accountants of India constituted under the Cost and Works Accountants Act, 1959 (23 of 1959); (vii) post-graduate degree or diploma in management sciences, granted by any university, or the Institutes of Management, Ahmedabad, Calcutta, Bangalore or Lucknow; (viii) post-graduate diploma in company secretaryship granted by the Institute of Commercial Practice under the Delhi Administration or Diploma in Corporate Laws and Management granted by the Indian Law Institute, New Delhi; (ix) post-graduate diploma in company law and secretarial practice granted by the University of Udaipur; or (x) membership of the Association of Secretaries and Managers, Calcutta, registered under the West Bengal Registration of Societies Act, 1961 (XXVI of 1961): Provided that where the paid-up share capital of such company is increased to rupees [4] [two crores] or more, the company shall, within a period of one year from the date of such increase, comply with the provisions of sub-rules (1) and (2) of rule 2. Explanation. In this rule, "University" has the meaning assigned to it in the University Grants Commission Act, 1956 (No. 3 of 1956), and includes any university outside India which is recognised by the Union Public Service Commission for the purposes of recruitment to public services and posts in connection with the affairs of the Union or of any State. --------------------------------- Notes:- [1] Substituted for "fifty lakhs" by GSR 419(E), dated 11-6-2002, w.e.f. 11-6-2002. [2] Substituted for "fifty lakhs" by GSR 419(E), dated 11-6-2002, w.e.f. 11-6-2002. [3] Inserted by the Companies (Appointment and Qualifications of Secretary) (Amendment) Rules, 2003, w.e.f. 14-10-2003. [4] Substituted for "fifty lakhs" by GSR 419(E), dated 11-6-2002, w.e.f. 11-6-2002.