Saturday, May 10, 2025

Section 204 – Secretarial Audit

 

Section 204 – Secretarial Audit

Key Points:

  • Certain classes of companies, like listed companies or large public companies, must have a secretarial audit conducted by a Company Secretary (CS).

  • The secretarial audit focuses on compliance with the Companies Act, SEBI regulations, and other laws.

Compliance Steps:

  • Engage a certified company secretary to carry out the secretarial audit.

  • Ensure that the secretarial auditor's report is submitted to the board of directors and the RoC (Registrar of Companies).

Example:

  • Hindustan Unilever (HUL) complies with this provision by engaging a qualified Company Secretary for secretarial audits, which ensures adherence to corporate governance norms and statutory compliance.

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