Corporate Updates – 22-12-2015


MCA has amended the Companies (Audit and Auditors) Rules, 2014 and notified the rules which may be called the Companies (Audit and Auditors) Amendment Rules, 2015 and it shall come into force on the date of their publication in the Official Gazette. Through these amended rules provisions, procedure and Reporting of frauds by auditor and other matters are now prescribed. lf an auditor of a company, in the course of the performance of his duties as statutory auditor, has reason to believe that an offence of fraud, which involves or is expected to involve individually an amount of rupees one crore or above, is being or has been committed against the company by its officers or employees, the auditor shall report the matter to the Central Government. Further, the report shall be sent on the letter-head of the auditor containing postal address, in the form of a statement as specified in Form ADT-4, to the Secretary, Ministry of corporate Affairs in a sealed cover by Registered Post with acknowledgement due or by Speed Post followed by an e-mail in confirmation of the same. The provision of this rule shall also apply, mutatis mutandis, to a Cost Auditor and a Secretarial Auditor during the performance of his duties under section 148 and section 204 respectively.

ICSI – Resignation of Company Secretary:

ICSI has established a Help/ Conciliation Desk to assist the members facing issues relating to the non filing of DIR – 12 for Resignation of Company Secretaries with the concerned ROC. It has come to the notice of the Institute that upon resignation of the members in employment either as Company Secretary or Key Managerial Personnel, the employer companies are not accepting resignation and not relieving such members from their duties. Further, the employer companies are also filing complaints against such members with MCA and other regulators. This results in delay in joining other company / organisation and harassment on the members of the Institute. Keeping in view the above, the Institute has also requested the Ministry of Corporate Affairs to intervene and also requested for issuance of necessary advisory to the RDs/ROCs to help those Company Secretaries for getting relieved from those companies; and in case, no filing of DIR-12 is done within the specified period from the date of event, the companies may be held liable and notices may be issued for such companies.

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