Compliance with Secretarial Standards
Section 118 (10) of the Companies Act, 2013 introduces Secretarial Standards and provides statutory recognition to Standards issued by ICSI. It mandates observance by every company of the Secretarial Standard on Meetings of the Board of Directors (SS-1) and Secretarial Standard on General Meetings (SS-2) specified by ICSI and approved by the Central Government.
Under the Companies Act 2013, the responsibility of ensuring compliance is entrusted with the Company Secretary. Clause 205 prescribes the functions of the Company Secretary which inter-alia includes ensuring that the company complies with the applicable Secretarial Standards.
PCS conducting secretarial audit must also ensure compliance with applicable Secretarial Standards.