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Need for Secretarial Standards

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 asked

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

Companies follow diverse secretarial practices. These practices have evolved over a period of time through varied usages and as a response to differing business cultures. As an illustration, the Companies Act, 1956, provides that companies must convene their Board Meetings by giving notice to directors in this regard. However, no minimum period for giving such Notice has been laid down and, companies are at liberty to giveany or no length of notice for convening a Board Meeting.

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Data?1494421730 answered

Dear Friend You can Read Blogs on CAKART on this topic [Secretarial Standard] Thanks https://www.cakart.in/blog/?s=Secretarial%20Standards

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

**NEED FOR SECRETARIAL STANDARDS** Companies follow diverse secretarial practices. These practices have evolved over a period of time through varied usages and as a response to differing business cultures. As an illustration, the Companies Act, 1956, provides that companies must convene their Board Meetings by giving notice to directors in this regard. However, no minimum period for giving such Notice has been laid down and, companies are at liberty to giveany or no length of notice for convening a Board Meeting. Further, there is no requirement for sending Agenda for the Meeting. Companies, therefore, follow varied practices with regard to giving Notices and sending Agenda and Notes on Agenda for Meetings of the Board of Directors. Some companies specify the business to be transacted in the Notice itself, while others send a separate Agenda. In addition, some companies also send detailed Notes, explaining each item on the Agenda. While some companies send the Agenda in advance of the Meeting, others place the Agenda at the Meeting itself. Even in case of those companies which send the agenda in advance, the period varies. These divergent practices need to be harmonised by laying down the best practices in this regard. A need was, therefore, felt to integrate, consolidate, harmonise and standardise all the prevalent diverse secretarial practices, so as to ensure that uniform practices are followed by the companies throughout the country. Such uniformity of practice consistently applied, would result in the establishment of sound corporate governance principles. Thanks

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