Section 204 Secretarial audit for bigger companies – Companies Act 2013

Amended and updated notes on section 204 of Companies Act 2013. Detail discussion on provisions and rules related to secretarial audit for bigger companies.

Amended and updated notes on section 204 of Companies Act 2013. Detail discussion on provisions and rules related to secretarial audit for bigger companies.

Chapter XIII (Sections 196205) of the Companies Act, 2013 (CA 2013) deals with the provisions related to appointment and remuneration of managerial personal. Section 204 of CA 2013 provides for secretarial audit for bigger companies.

Recently, we have discussed in detail section 203 (Appointment of key managerial personnel) of CA 2013. Today, we learn the provisions of section 204 of Companies Act 2013.

The provisions of section 204 are effective from 1-April-2014. You may refer Notification No. S.O. 902(E) issued dated 27-03-2014. In this article, you will learn detail of the provisions of section 204 of the Companies Act 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

Name of ActThe Companies Act 2013
Enacted byParliament of India
Administered byMinistry of Corporate Affairs (MCA)
Number of Chapters29
Number of Sections484 (470-43+57)
Number of Schedules7
You are reading:
Chapter No.XIII
Chapter NameAppointment and Remuneration of Managerial Personal
Section No.204
Section NameSecretarial audit for bigger companies
Monthly Updated EditionCompany Law PDF

Section 204 of Companies Act 2013: Secretarial audit for bigger companies

Section 204 shall come into force on 1st April, 2014 vide Notification No. S.O. 902(E) issued dated 27.03.2014.

(1) Every listed company and a company belonging to other class of companies as may be prescribed shall annex with its Board’s report made in terms of sub-section (3) of section 134, a secretarial audit report, given by a company secretary in practice, in such form as may be prescribed.

(2) It shall be the duty of the company to give all assistance and facilities to the company secretary in practice, for auditing the secretarial and related records of the company.

(3) The Board of Directors, in their report made in terms of sub-section (3) of section 134, shall explain in full any qualification or observation or other remarks made by the company secretary in practice in his report under sub-section (1).

(4) If a company or any officer of the company or the company secretary in practice, contravenes the provisions of this section, the company, every officer of the company or the company secretary in practice, who is in default, shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees.


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