Justify the following statement:

Secretarial Standards should be in conformity with the Act.

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1 Answers

  • The Secretarial Standards are formulated by the Institute of Company Secretaries of India and approved by the Central Government through the Ministry of Corporate Affairs.
  • The Companies Act, 2013, makes compliance with the Secretarial Standard mandatory.
  • It leads to provide better monitoring of compliances of law, strengthening the process of the Board, and create confidence in investors.
  • The Secretarial Standards aim at achieving integrating, harmonizing, and standardizing fine corporate governance practices across all companies.
  • Thus, Secretarial Standards should be in conformity with the Act.

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