Action points regarding the compliance with Secretarial standards 1 & 2

Secretarial Standards 1 & 2 have become effective from July 01, 2015. As per section 118(10) of companies Act 2013 every company has to comply with these standards.

These standards trigger certain action points at board level, shareholders level & general. Following is the summary of action points regarding compliance of these standards:

ACTIONS REQUIRING BOARD APPROVAL

1. If Company has no Company Secretary, decide the followings:

• Who shall be authorized to convene Board meeting on request of directors.
• Authorized to sign and issue notices for convening Board meetings.
• A Authorized to receive communications from Directors regarding participation through electronic mode.
• In authorized to facilitate inspection of attendance register, minutes book, supporting papers to agenda etc.
• Authenticate entries in attendance register.
• Custody of Attendance register, minutes book etc.
• Make recording/entry of minutes.
• Issue certified true copies of resolutions/extract of minutes.

2. Decide policy regarding numbering of Board meetings – whether to start from date of incorporation or 01.07.2015. Further the Board may also decide policy regarding numbering of each agenda items.
3. Board may decide and add the list of business which cannot be taken up through video conferencing.
4. If Company opts for holding meetings through video conferencing – decide, if VC infrastructure to be arrange in-house or from vendor.
5. Further also make necessary arrangements for maintaining data privacy/secrecy.
6. The Board may approve the standard templates for agenda notes including layout covering background, main body, financial implication of the proposal, nature of concern/interest, Resolution, if any proposed to be passed, Annexure etc.
7. Board may further lay down internal systems for preparation/drafting, initiating authority, concurring authority and approving authority.
8. May decide tentative meeting calendar for a year to facilitate the board members to plan in advance.
9. This may approve term of reference/charter document for each committee to inter-alia provide for scope of working, committee members, Chairperson, meeting frequency, tenure of committee, quorum etc.
10. If Company maintains the following records in loose leaves, the Board may approve and fix the interval/period for binding:

• Attendance Register
• Board meeting Minutes
• Committee meeting Minutes
• General meeting Minutes

10. The Board may define policy as to who can be invitee to Board meetings and appropriate authority for inviting him to particular meeting. The Board may also decide permanent invitees to the Board meetings.
11. It may decide the place of keeping the followings and process for keeping at some other place or taking the same to some other place:

• Attendance Register
• Minutes Book

12. The Board may approve the policy for preservation and destruction of attendance register and supporting documents of agenda notes.
13. If AOA does not provide for Chairman of the Company, the Board may elect Chairman among themselves.
14. The Board may prepare and approve standard manual for conduct of meetings to avoid conflicts.
15. The Board may decide regarding maintenance of minutes in physical or in electronic form and if maintained in physical form, the stationery on which minutes to be printed may also be approved.
16. If maintained in electronic form, the Board shall approve system in which minutes shall be stored, manner of signing with time stamp, backup, access, inspection etc.
17. Further the Board to also approve regarding the deviations made from the approved policy for maintenance of minute book.
18. The Board may approve the logical manner in which name of Board members to be recorded in Minutes book.
19. The Board may approve the organizational hierarchy to facilitate identification of persons one level below KMP.
20. The Board may identify and prescribe the additional contents to be included in minutes.
21. With respect to each general meeting the Board shall approve the following:

• Appointment of scrutinizer for e-voting/ballot process.
• Appointment of e-voting agency.
• Fixation of cut-off date for the purpose of reckoning the names of Members who are entitled to Voting rights.
• Authorise the Chairman or in his absence, any other Director to receive the scrutiniser’s register, report on e-voting and other related papers with requisite details.
• Custody of scrutinisers’ register, report and other related papers.

20. With respect to each postal ballot, the Board shall approve the following:

• identify the businesses to be transacted through postal ballot;
• approve the Notice of postal ballot incorporating proposed Resolution(s) and explanatory statement thereto;
• authorise the Company Secretary or where there is no Company Secretary, any Director of the company to conduct postal ballot process and sign and send the Notice along with other documents ;
• appoint one scrutiniser for the postal ballot.
• appoint an Agency in respect of e-voting for the postal ballot.
• decide the record date for reckoning Voting Rights and ascertaining those Members to whom the Notice and postal ballot forms shall be sent.
• decide on the calendar of events.
• authorize the Chairman or in his absence, any other Director to receive the scrutinizer’s register, report on the postal ballot, and other related papers with requisite details.

GENERAL MEETING ACTION POINTS

1. Obtain following declarations from each director, at the time of appointment and thereafter on annual basis:

• Preferred mode of dispatch of notice, agenda, circular resolutions, draft minutes, signed minutes and other communications.
• Address for dispatch of notice, agenda, circular resolutions, draft minutes, signed minutes and other communicationsc.   Email id for sending documents/communications.

2. Secretarial department may consider maintenance of separate Inward/dispatch/delivery register to facilitate easy maintenance of records and their retrieval.
3. Necessary checks may be made from time to time to ensure presence of director at least once in 12 months, so he does not vacate in terms of the provisions of section 167 of the Act.
4. The Company may prepare index of agenda of all meetings to facilitate easy retrieval of past decisions/resolutions.
5. The company to create/hire e-mail system which produces confirmation of the total number of recipients e-mailed and a record of each recipient to whom the Notice has been sent.
6. Updation of website of the Company to include general meeting notices, postal ballot notices, route map and landmark of venue of general meeting.
7. Prepare explanation for absence of respective director at general meetings.
8. Arranging exemption to Statutory Auditor/Secretarial Auditor, if not attending general meetings.
9. Prepare General meeting script for facilitation of conduct of meeting by Chairman and explaining objective and implication of each resolution, reading of comments, qualifications, adverse remarks of Statutory Auditors/Secretarial Auditors.

ACTIONS REQUIRING SHAREHOLDERS APPROVAL –  ALTERATION IN AOA

1. AOA may be amended to define authority for convening of Board meeting. In absence of specific provision in AOA, all directors shall have authority to convene Board meeting.
2. AOA may be amended to provide length of notice of Board meeting/Agenda for more than 7 days.
3. Articles may be amended to provide desired number of minimum number of directors, without which the Company cannot function.
4. AOA may provide for Chairman of the Company.
5. AOA may be altered to restrict second/casting vote of Chairman.
6. AOA of private Companies may make the provisions of section 101 to 107 & 109 inapplicable and provide corresponding clause as suitable to them viz. convening of general meeting with notice lesser than 21 days.
7. AOA may provide specific proxy form for general meeting.

Major Role: Secretarial, Legal Compliances and FEMA Compliances, Banking related documentation, etc. The work done is categorized below:

Secretarial & legal compliances:

Filing of replies for notices of strike off of Companies · Advisory services to Corporates- Legal opinions · Incorporation of Companies as per Companies Act, 2013

Preparation of Directors’ Report, Management Discussion and Analysis, Corporate Governance Report, · Convening of Board Meetings and EGM of Private and Public Limited Companies · Preparation of various e – Forms CHG-1, CHG-4, INC 7, INC 1, INC 22, INC 24, MR1, GNL 2, DIR 12 and addendum forms & Annual returns filing of the Private and Public Limited Companies. · Filing of MGT-14 for various purposes.

Handling XBRL and non XBRL Annual Filings, E-forms and Secretarial Compliances with MCA portal · Prepare Minutes of Board Meetings, Annual General Meetings & Extra-Ordinary General Meetings.

Drafting of various documents, e.g. Notice, Resolutions, Board Report, Minutes, etc. · Work relating to increase in authorized capital, alteration in MOA, change of name, change of registered office.

Apply & obtaining of DIN & DSC of class 2 and class 3.

Maintaining the statutory register & records under Companies, Act 2013

Liasoning & dealing with Registrar of Companies, Revenue Department, DGFT etc. · Preparation of share certificates & payment of stamp duty online on allotment of shares of the Company. · Inspection of Company document by paying requisite fees in MCA -21.

Allotment of Shares through Preferential cum Private Placement Basis and Right Issue.

Preparation of various Board resolutions & authorization letters for various purposes like execution of MOU, lease deed, sale deed, registration in sales tax, service tax, VAT, obtaining license from PESO and various other industries

Vetting of various agreements like Lease Agreements, Takeover agreement, Shareholder agreement, etc. · Formation & winding up of LLPs

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• Post-Incorporation Compliances Filling of LLP

Compliance in relation to appointment and remuneration of KMP in accordance with Companies Act, 2013. · Issue of Debentures · E-voting

FEMA, DGFT & other related Compliances: · Online Reporting of FDI to RBI through AD banker in ARF form. · Filing of online FCGPR with RBI · Filing of Foreign Liabilities & Assets return (FLA) with RBI ·

Compliances related to Downstream Investment · Application and online modification of IEC with DGFT, also done some compliances related to the application of EPCG license.

Liasoning with various Banks for the documents like KYC, UIN, FCGPR registration no. & other acknowledgments related to FDI.

Application of Registration Cum Membership Certificate (RCMC) from Federation of Indian Export Organization (FIEO). · Liasoning with NIC.

Registration of Trust under FCRA (Foreign Contribution Regulation Act) · Registration of Societies and Trusts.

Banking, Demat, Pledge & other Compliances:

· Preparing Due Diligence Report of the Company · Preparing Search Report of the Company · Vetting of the availing of term loan and working capital limits documents with various Banks.

Opening of Bank accounts · Preparation of Corporate Action Information Forms for the demat of shares · Opening of Demat Account of Individuals & Companies.

Pledging of shares with the Bank. · Liasoning with Depository, Depository Participant & RTA in relation to the demat of shares.

Entering into an agreement with Depository for the opening of Demat account of Companies. · Application of PAN & TAN of Companies

Application of Trademarks, Copyrights and other Intellectual Properties:

Application of trademarks, copyrights, patents, designs, logos and filing their replies.

Attending hearing We provide services to CA firms, Corporates, individuals into their own business for ROC and other related work. We look forward to the opportunity to work with you in the near future.

For query or help, contact: singh@carajput.com or call at 9555555480