Understanding the Role of Company Secretary Designation and Legal Compliance during Probation Period

Dear All,

It is really great to be back on the CiteHR Platform. I was away for the last 7 months as I was engaged in a project.

Dear Seniors,

I want to ask a query. We have recently hired a CS in our company and given him an appointment letter with the designation of Assistant Company Secretary.

Now, the first query is, can he sign as Asst. CS on legal papers during his probation period? He is saying that he cannot sign any paper until his probation is over.

My second query is, if we have given him the designation of Assistant Company Secretary, is it mandatory to promote him to Company Secretary within a year or two?

Awaiting your response.

Cheers

As long as he is on the company's payroll, he can sign any papers, regardless of whether he is in probation or regular service. Regarding promotion, it is based on your company's policies and the performance of the individual.

Dear Sir,

If your company has a paid-up capital of Rs. 5 crore or more and is therefore compulsorily required to have a Company Secretary, you should offer him the designation of "Company Secretary" instead of "Asst. Company Secretary" as otherwise, it may amount to non-compliance with the Companies Act, 1956.

This is for your kind consideration, please.

Thanks,

Kind Regards,
Avika

Dear Pon and Avika,

Thank you for your valuable replies. Avika, can you tell me what this paid-up capital is? Turnover-wise, my company is around 1000 crore. We already have a CS in place, and as far as I know, you cannot offer two CSs the designation of Company Secretary.

Thank you.

Dear Mr. Sujeet,

You are correct, and the person appointed as Assistant Company Secretary is under obligation to sign documents on behalf of the Company if he has been authorized by the Company or its Board of Directors to do so. He cannot refuse to sign documents on the pretext that he is on probation.

Kindly check with your records (or the Company Secretary) as to who are the people authorized by the Board of Directors to sign legal documents on behalf of the Company as only those people can sign legal documents.

Hope this would be useful.

Thanks,
Kind Regards,
Avika

Dear Avika and Pon,

Thank you very much for your reply. I am now very clear about the role of Customer Service. Once again, thanks for your kind contribution.

Cheers...