Purpose: The purpose of Section 203 is to make it mandatory for certain companies to appoint a whole-time company secretary and to regulate the functions of the company secretary.
Applicability: The section is applicable to the following companies:
Every listed company
Every public company having a paid-up share capital of Rs. 10 crores or more
Every public company having a turnover of Rs. 50 crores or more
Timeline: The companies covered by this section are required to appoint a whole-time company secretary within six months from the date on which the provisions of this section become applicable to them.
Exemption: The section does not apply to a private company.
Penalty: If a company fails to comply with the provisions of this section, the company and every officer of the company who is in default shall be punishable with a fine which shall not be less than Rs. 1 lakh but which may extend to Rs. 5 lakh.
Due date: The appointment of a whole-time company secretary must be made within six months from the date on which the provisions of this section become applicable to the company.
Forms: No specific form is required for compliance with this section.
Reporting authority: The compliance with this section is reported in the Board's Report of the company.
