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RANJ Corporate Updates August 2011
 

RANJ Corporate Updates August 2011

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A compendium of Company Law, Income Tax, FEMA, SEBI, RBI updates

A compendium of Company Law, Income Tax, FEMA, SEBI, RBI updates

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    RANJ Corporate Updates August 2011 RANJ Corporate Updates August 2011 Document Transcript

    • AUGUST 2011 For Private Circulation only
    • Corporate Updates August 2011 TABLE OF CONTENTS PAGE NO. CORPORATE AFFAIRS E-filing of Income Tax return in respect of companies under liquidation Payment of fees to CAs in cases where funds are not permitted from Common Pool Fund XBRL Filing date extended to 30/11/2011; CS, CWA also to certify XBRL documents Syncronisation of DPIN with DIN New ‘Name Availability Guidelines, 2011” Waiver of approval of Central Government for payment of remuneration to professional managerial person by companies having no profits or inadequate profits Online incorporation of companies within 24 hours Simplified procedure for shifting of registered office from one state to another state, rectification of register of charges Guidelines for RDs/ROCs in the matter of scheme of arrangement /amalgamation under section 391-394 Pro-active action in case of winding up petitions Blocking of DIN consequent to non-filing of Statement of Affairs TAXATION Check your Income Tax Credit Status (Form 26AS) Online Firm or individual/HUF covered under section 44AB are mandatorily required to file ITR-5 or ITR-4 electronically using digital signature Clarification on Point of taxation Rules in respect of ‘Completion of service’ RBI / FEMA Regularization of Liaison / Branch Offices of foreign entities established during the pre-FEMA period Redemption of Foreign Currency Convertible Bonds SEBI Clarification regarding admission of Limited Liability Partnerships as members of Stock Exchanges New Takeover Regulations and other simplification moves by SEBI ICSI Due date for payment of annual membership and certificate of practice fee extended Entitlement of number of trainees by a PCS 39th National Convention of Company Secretaries at AgraRANJ & Associates www.ranj.co.nr Page 2 of 17
    • Corporate Updates August 2011 E-filing of Income Tax Return in respect of companies under liquidation Official Liquidators have reported to the Ministry of Corporate Affairs that they are facing problems in e-filing of Income Tax Returns of ‘Companies under liquidation’ since the verification part of the report require them to mention their personal PAN even when they file the Return as a representative assesee of the company (in liquidation). To negate this inconvenience, MCA after discussing the matter with Central Board of Direct Taxes advised the Official Liquidators to quote PAN of the company in the returns and their personal PAN for the purpose of identification of the person who has signed the Return only. (General Circular No. 41/2011 dated July 06, 2011) Impact / Highlights: After the winding up order is passed by High Court, while obtaining Statement of Affairs from the Directors and taking possession of company’s rights, Official Liquidator should also take possession of PAN/TAN Numbers and Cards. Wherever no PAN is available, Official Liquidator should apply for PAN Card after his appointment, company-wise with the approval of Company Judge and meet the expenses in obtaining the PAN Cards from respective company’s accounts. In cases where certificate of Registration and/or Article of Association/ Memorandum of Association are unavailable, the concerned ROC be requested to send documents about the company for applying to concerned ITO for obtaining PAN. In the verification column of the ITR, OL will mention his personal PAN as this is only for the purpose of Verification Number obtained in official designation. As Representative Assessee, official address of Official Liquidator’s office would be mentioned as the address of the company under Liquidation. Since this is a regular activity, Staff to be trained to prepare and file application for PAN with outsourced agencies of CBDT namely NSDL and UTI; No CA firms/consultants shall be employed for above tasks.RANJ & Associates www.ranj.co.nr Page 3 of 17
    • Corporate Updates August 2011 Payment of fees to CAs in cases where funds are not permitted from Common Pool Fund In cases where petitions are filed in courts in respect of companies under liquidation having no assets it has been decided by the Ministry of Corporate Affairs that fees to be paid to the Chartered Accountants from Common Pool Fund. Impact / Highlights: Official Liquidator will take permission of Court to appoint a Chartered Accountant for issuing necessary certificate(s). The terms and conditions of payment of fees to the CAs in such cases will be decided by a Committee consisting of concerned OL and ROC, chaired by the RD. All the fees will be approved by the Committee by following General Financial Rules. Each OL is to maintain a list of local CAs/CA firms and selection should be done from them only. XBRL Filing date extended to 30/11/2011; CS, CWA also to certify XBRL documents A sigh of relief for the companies who are required to file their Balance sheet and Profit and Loss account in XBRL mode as the Ministry of Corporate Affairs vide its general circular No. 57/2011 dated 28/7/2011 has extended the due date of filing without any additional fees up to 30-11-2011 or within 60 days of their due date, whichever is later. Another relief for the companies provided by the same circular is that the accounts that are required to be filed in XBRL mode can be verified and certified by the authorized signatory of the company. Earlier vide general circular No. 43/2011, the statutory auditor of the company was to certify the correctness of the financial statements to be filed in XBRL mode. After this circular the verification and certification of the XBRL document of financial statements on the e-forms would continue to be done by authorized signatory of the company as well as professional like Chartered Accountant or Company Secretary or Cost Accountant in whole time practice. Syncronisation of DPIN with DIN The Ministry of Corporate Affairs has been issuing two separate identification numbers as Directors Identification Number (DIN) under Companies Act, 1956 to an individual for becoming a director of a company under Companies Act, 1956 and Designated Partner’s Identification Number (DPIN) for a designated partner in a Limited Liability Partnership under Limited Liability Partnership (LLP) Act,RANJ & Associates www.ranj.co.nr Page 4 of 17
    • Corporate Updates August 2011 2008. To avoid this duplicity and to give ease to the stakeholders, the Ministry vide General Circular No. 44/2011 dated July 08, 2011 has decided to issue only one identification number to an individual for both the purpose. Therefore, the Ministry has integrated the DIN with DPIN with effect from 9-7- 2011. Impact / Highlights: With effect from 9-7-2011, no fresh DPIN will be issued. Any person, who desires to become a designated partner in a Limited Liability Partnership, has to obtain DIN by filing e-form DIN-1. If a person has been allotted DIN, the said DIN shall also be used as DPIN for all purposes under Limited Liability Partnership Act, 2008. Similarly, if a person has been allotted DPIN, the said DPIN will also be used as DIN for all the purposes under Companies Act, 1956. If a person has been allotted both DIN and DPIN, his DPIN will stand cancelled and his DIN will be used as DIN as well as DPIN for all purposes under Limited Liability Partnership Act, 2008 and Companies Act, 1956. All DPIN/DIN holders, who had not furnished their PAN at the time of obtaining DPIN/DIN, are required to furnish their PAN to the Ministry by filing e-form DIN-4 by 30th September, 2011, failing which their DPIN/DIN will be disabled and they will also be liable for heavy penalty. New ‘Name Availability Guidelines, 2011’ The Ministry of Corporate Affairs (MCA) has revised the Company Name application and approval process and the company name availability in India will be regulated as per the revised Name Availability Guidelines 2011. These guidelines and revised e-form 1A have been implemented with effect from 24th July, 2011. Impact / Highlights: A proposed name is considered to be undesirable if it is identical with or too nearly resembling with: (i) Name of a company in existence and names already approved by the Registrar of Companies; (ii) Name of a LLP in existence or names already approved by Registrar of LLP; or (iii) A registered trade-mark or a trade mark which is subject of an application for registration, of any other person under the Trade Marks Act, 1999. Where e-form 1A has been certified by the professional in the manner stated at ‘3’ above, the name will be made available by the system online to the applicant without backend processing by the Registrar of Companies (ROC). In case of any deviation from the above requirement, the professional shall liable for penal action under provisions of the Companies Act, 1956 in addition to the penal action under Regulations of respective professional Institutes. The professional will also certify that the proposed name is not an undesirable name under the provisions of section 20 of the Companies Act, 1956 and also is in conformity with Name availability Guidelines, 2011.RANJ & Associates www.ranj.co.nr Page 5 of 17
    • Corporate Updates August 2011 It is not necessary that the proposed name should be indicative of the main object, except in case business is finance, housing finance, chit fund, leasing, investments, securities or combination thereof. The filing fee for application for availability of name in e-form 1A has also been increased to Rs. 1,000/-. Waiver of approval of Central Government for payment of remuneration to professional managerial person by companies having no profits or inadequate profits Presently, listed companies and their subsidiaries companies, which are not having profits or having inadequate profits, have to come to the Central Government for seeking approval for payment of remunerations exceeding Rs. 4 lakh p.m. even to professional managerial person, who has no interest in the capital or any relation with the directors of the company. The Ministry has decided to amend Schedule XIII to the Companies Act, 1956 w.e.f. 14.7.2011. Impact / Highlights: No approval of Central Government will be required by the listed companies and their subsidiary companies, which are not having profits or having inadequate profits for payment of remunerations exceeding Rs. 4 lakh p.m., if the managerial person: (a) is not having any direct or indirect interest in the capital of the company or its holding company or through any other statutory structures at any time during last two years before or on the date of appointment and (b) is having a graduate level qualification with expert and specialized knowledge in the field of his profession. Online incorporation of companies within 24 hours In order to give ease to the corporate world, the Ministry vide General Circular No. 49 /2011has modified the incorporation procedures to enable promoters to get their companies incorporated online within 24 hours. Impact / Highlights: In case the e-forms 1, 18, 32 and e-form for MOA and AOA have been certified by the practicing professional the application shall be processed electronically and the digital certificate of incorporation shall be issued immediately online by the Registrar of Companies. The above facility is optional to the existing process of backend processing of applications by the Registrar of Companies. Where a company has been registered online on the basis of declarations made by the subscribers, declarant(s) and certifications by the professional(s) given in the e-form, if it is found later that the same is not in conformity with the Companies Act 1956 or rules Registrar of Companies shall take necessary action to put the company in state of suspended animation and initiate the process of revocation.RANJ & Associates www.ranj.co.nr Page 6 of 17
    • Corporate Updates August 2011 If any of the information or declaration or certification in the e-forms found to be wrong, false or illegal then subscriber, declarant(s) and professional(s) shall be liable for penal action under section 628 and 629 of the Companies Act, 1956. The above simplified process of online incorporation of companies is likely to be implemented with effect from 11th August, 2011. Simplified procedure for shifting of registered office from one state to another state, rectification of register of charges The Ministry of Corporate Affairs vide General Circular No. 50 / 2011 decided to delegate the work relating to shifting of registered office from one state to another state and consequent alteration to Memorandum of Association of the company under section 17 of the Companies Act, 1956 to the Registrar of Companies under whose jurisdiction the registered office of the company is situated. Further, General Circular No. 51/2011 of the Ministry simplifies the procedures for rectification of register of charges under section 141 of the Companies Act, 1956 by empowering the respective Registrar of Companies to discharge these functions instead of the Company Law Board. Impact / Highlights: The petitions filed with the Company Law Board and pending as on the effective date of notification to be transferred to respective Registrar of Companies. This move of the MCA is expected to cut the timelines and cost involved in the above processes. The simplified procedures are likely to be implemented with effect from 24th September, 2011. Guidelines for RDs/ROCs in the matter of scheme of arrangement /amalgamation under section 391-394 It has been observed that various field formations are following different practices while sending comments to the Hon’ble High Courts in respect of scheme of arrangement/amalgamation u/s 391- 394 of the Companies Act, 1956 on behalf of the Central Government. In order to streamline the procedure these guidelines along with timelines are issued for strict compliance, which will also supersede all previous guidelines on the matter.RANJ & Associates www.ranj.co.nr Page 7 of 17
    • Corporate Updates August 2011 Impact / Highlights: On receipt of notice from the court u/s 394A regarding the scheme, the Regional Director should make an entry in a register or in electronic form. If the petition has already been filed with ROC in Form 61 in the system, the same can be monitored directly from the system. ROC should furnish his report online to RD within 7 days from receipt of Form 61 without waiting for RD’s communication. Within seven days of receipt of notice RD should send a letter to local branch of Law Ministry / Assistant Solicitor General appointed for the state by Law Ministry as the case may be (furnishing copy of the notices received u/s 394A) requesting for nomination of an advocate. Regional Director should send a letter within five days of receipt of notice to company / its Advocate to provide material of valuation report, Chairman’s report regarding creditors / members meeting and the matter should be processed and finalized within a week’s time. The finalized affidavit should be sent to designated Standing Counsel for signature and then to Law Ministry for identification and shall be filed in Court Registry. The ROCs shall send their report to concerned RDs who would take into consideration the report of the ROC before finalizing their comment. Pro-active action in case of winding up petitions It has been noticed that winding up petitions are filed by creditors, stake holders and management before Hon’ble High courts without providing full information. This leads to waste of valuable time of Hon’ble Court and also delays completion of winding up process as well. In order to speed up the winding up process and to introduce best international practices the winding up process, MCA has vide General Circular No. 54/2011 issued new directives for actions by official liquidators. OLs shall post one of the staff members to the Company Court to keep track of all cases where applications have been filed for winding up, but orders for winding up are yet to be issued by the Court. For all cases pending till date and in future as well, information shall be obtained by OL from “institution register” maintained in High Court and action as below must be taken in all cases. In each case the OL will file an application praying to the Court to direct the management of the company to submit information/documents duly verified by a Company Secretary / Chartered Accountant / Cost Accountant in practice. RDs will ensure that in all pending cases, the applications are moved by OL before the Court before the next date of hearing and in all new cases, these are filed before the Hon’ble Court before the second hearing of the case. RDs will ensure that a standard draft is prepared by them after taking legal advice and the same is used in all cases by OLs.RANJ & Associates www.ranj.co.nr Page 8 of 17
    • Corporate Updates August 2011 Blocking of DIN consequent to non-filing of Statement of Affairs In order the speed up the liquidation process for companies, the MCA has issued a circular stating that DIN of Directors of companies which have not filed Statement of Affairs, will be blocked. The MCA intends to give a month’s notice before initiating action of blocking the DIN. Official Liquidators shall furnish list of all such directors who have failed to furnish SOA (giving their details) on 3rd working day of every month starting from 5th September, 2011 by e-mail to respective RD, ROC, e- Governance Cell and Insolvency Section of this Ministry. Check Your Income Tax Credit Status (Form 26AS) Online Income Tax Department facilitates a PAN holder to view its Tax Credit Statement (Form 26AS) online. Taxpayers are advised to verify the tax credits available in 26AS statement before filing the Income Tax Return. It will facilitate faster processing and quick refunds. What does Form 26AS contain? Form 26AS provides details of: Tax deducted and collected on behalf of taxpayers Advance tax/self assessment tax/regular assessment tax etc deposited by taxpayers (PAN holders) Payment of refund during the financial year High value transactions in respect of shares, mutual funds etc Firm or individual/HUF covered under section 44AB are mandatorily required to file ITR-5 or ITR-4 electronically using digital signature The Central Board of Direct Taxes (CBDT) has vide its Notification No. 37/2011 dated 1-7-2011 mandated partnership firms, individuals and Hindu Undivided Family (HUFs) subjected to compulsory tax audits to file their income-tax (IT) returns only electronically and that too under digital signature. This regime would be applicable for assessment years 2011-12 (financial year 2010-11) and subsequent years.RANJ & Associates www.ranj.co.nr Page 9 of 17
    • Corporate Updates August 2011 Clarification on Point of taxation Rules in respect of ‘Completion of service’ Earlier the service tax was payable on receipt basis but from 1.07.2011 the same has become payable on Invoice basis and to administer the same – Point of taxation rules (POT) were introduced –which defined when the tax would become payable – one of the terms used in the POT was “Completion of service” (COS) – further the Service tax rules say that the assessee will have to issue an invoice within 14 days of the completion of service. Hence the assessee will have to pay tax on an invoice which will have to be issued within 14 days of Completion of Service – this term COS has not been defined in clear terms which was creating a lot of issues with the assessees specially from construction sector. The Board has now issued a circular whereby it has tried to clarify the meaning of COS and give a very lenient and practical meaning to it. COS would not just mean physical completion of work but would also include completion of some other auxiliary activities and basic formalities like quality testing etc which are pre-requisite to arriving at the invoiceable figure. Regularization of Liaison / Branch Offices of foreign entities established during the pre-FEMA period The Reserve Bank of India has noticed that certain Branch offices (BOs) / Liaison Office (Los) established by the Foreign NGOs, NPOs, news agencies and other foreign entities (during pre FEMA period) are continuing to function in India without its approval after FEMA came into force from 1 June 2000. Thus, vide circular A.P. (DIR Series) Circular No. 02 dated July 15, 2011, RBI directed that such foreign entities should approach the Reserve Bank for regularization of establishment of such offices in India, in terms of the extant FEMA provisions. Impact / Highlights: Application for regularization by aforementioned foreign entities shall be made to the Reserve Bank within a period of 90 days from the date of issue of this circular. The foreign entities who may have established LO or BO with the permission from the Government of India may also approach the RBI along with a copy of the said approval for allotment of a Unique Identification Number (UIN) by the Reserve Bank.RANJ & Associates www.ranj.co.nr Page 10 of 17
    • Corporate Updates August 2011 ADs / Banks to ensure that their all their constituents operating LO / BO in India have valid approval from the RBI and copy of such approval is obtained and kept on their record. Redemption of Foreign Currency Convertible Bonds The apex bank vide circular A.P. (DIR Series) Circular No.01 (Last Circular of 2010-11 is 75) dated July 04, 2011 provided a window to facilitate refinancing of FCCBs by the Indian companies who may be facing difficulty in meeting the redemption obligations, it has been decided to consider applications for refinancing of FCCBs by Indian companies under the automatic route. Accordingly, designated AD Category - I banks may allow Indian companies to refinance the outstanding FCCBs subject to compliance with certain the terms and conditions. Impact / Highlights: The amount of fresh ECB/FCCB shall not exceed the outstanding redemption value at maturity of the outstanding FCCBs and shall not be raised six months prior to the said maturity date. The purpose of ECB/FCCB shall be clearly mentioned as ‘Redemption of outstanding FCCBs’ in Form 83 at the time of obtaining Loan Registration Number. The designated AD - Category I bank should monitor the end-use of funds; ECB / FCCB beyond USD 500 million for the purpose of redemption of the existing FCCB will be considered under the approval route; and This facility shall come into force with immediate effect. Restructuring of FCCBs involving change in the existing conversion price is not permissible. Clarification regarding admission of Limited Liability Partnerships as members of Stock Exchanges SEBI vide circular CIR/MIRSD/12/2011 dated July 11, 2011 clarified that LLP being a body corporate as per the LLP Act and are akin to LLC and partnership firms, as such Stock Exchanges may consider granting membership to LLPs subject to LLP complying with the conditions laid down in Rule 8(4A) of the SCRR, as far as it can apply to LLPs.RANJ & Associates www.ranj.co.nr Page 11 of 17
    • Corporate Updates August 2011 Impact / Highlights: Sub-rule 4A and 5 of Rule 8 of the SCRR provides that Limited Liability Companies (LLC) and partnership firms are eligible to be admitted as members of stock exchanges. n this context it may be stated that LLPs are akin to LLC and partnership firms. Stock exchanges are advised to make necessary clarificatory amendments to their bye-laws, rules and regulations and also bring the provisions of this clarification to the notice of the Stock Brokers and also disseminate the same on their websites. New Takeover Regulations and other simplification moves by SEBI The Securities & Exchange Board of India (SEBI) in its Meeting held on July 28, 2011, has come out with various amendments concerning enhanced governance of the securities as well as capital market which consists of SEBI Takeover Regulations, SEBI Prohibition of Insider Trading Regulations, Mutual Funds Regulations, ICDR Regulations, Stock Brokers and Sub Brokers Regulations, Merchant Bankers Regulations, RTA Regulations. Impact / Highlights a) SEBI Takeover Regulations: Initial trigger threshold for an open offer, from the existing 15 percent to 25 percent. Increase the open offer size from 20 percent to 26 percent. On accepting the TRAC recommendation of scrapping the non-compete fee by SEBI, the acquirers are now permitted to pay to the sellers in private sale deals upto a 25% of the total acquisition price. The logic for scrapping the non-compete fees is to ensure equal treatment of promoters and minority shareholders. In cases of competitive offers, the successful bidder can acquire shares of other bidder(s) after the offer period without attracting Open Offer obligations. Recommendation on the offer by the Board of Target Company has been made mandatory. Voluntary offers have been introduced subject to certain conditions. b) SEBI Insider Trading Regulations: Promoters and persons who are part of promoter group of a listed company to give the initial disclosures relating to their shareholding at the time of becoming promoter or part of promoter group;RANJ & Associates www.ranj.co.nr Page 12 of 17
    • Corporate Updates August 2011 Continuous disclosures whenever there is a change in their holdings exceeding Rs. 5 lakh in value or 25,000 shares or 1% of total shareholding or voting rights, whichever is lower. c) SEBI (Mutual Funds) Regulations, 1996 i. Transaction charges Transaction charge of Rs 100 for old customers and Rs 150 for the first time Mutual Fund investor for investment of over Rs 10,000. No transaction charge on (a) transactions other than purchases/ subscriptions relating to new inflows, and (b) direct transactions with the Mutual Fund. ii. Control over mutual fund distributors As a first move towards regulating the distributors of Mutual Funds, the Board has provided that the selected distributors will be regulated through Asset Management Companies (AMCs) by putting in place the due diligence process to be conducted by AMCs. The due diligence process may be initially applicable for those distributors satisfying one or more of the following criteria: Multiple point presence in more than 20 locations; AUM raised over Rs.100 crore across industry in the non institutional category but including high Networth individuals (HNIs); Commission received of over Rs. 1 crore p.a. across industry; Commission received of over Rs. 50 lakh from a single mutual fund. iii. Dispatch of Common Account Statement to Investors Monthly statement in respect of transaction in any of the folio of the Investor across the mutual funds; Half yearly statement for all the non transacted folios. iv. All the Operations of a Mutual Fund to be located in India The Board has provided for the Operations of a Mutual Fund including trading desks, unit holder servicing, and investment operations mandatorily to be based in India. Mutual funds having operations abroad will be required to immediately confirm that they shall wind up the same and bring them onshore within a period of one year from the date of this notification. d) Harmonization and Rationalization of KYC in Securities Market: SEBI to set up a mechanism wherein one or more SEBI regulated KYC Registration Agency (KRA) will undertake KYC at the stage of account opening for all clients in the securities market through SEBI Regulated Points of Service (PoS).RANJ & Associates www.ranj.co.nr Page 13 of 17
    • Corporate Updates August 2011 e) SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 Review of Bid-cum-application form and abridged prospectus and highlight materially relevant disclosures; Circulation of General Information Document (GID) in English and Hindi or Regional Language(s) along with the Application form giving the Information which is of generic nature. Eligibility criteria for companies coming out with IPOs through the ‘profitability track record’ In case of a pure ‘Offer for Sale’, the requirement that not more than 50% of the ‘net tangible assets’ shall be held as ‘monetary assets’, shall not be applicable; The requirement of track record of distributable profits for at least three out of immediately preceding five years shall be complied with both on stand-alone as well as consolidated basis. Top 500 listed companies to disclose in a prescribed format, voting results/ patterns on their websites and to the exchanges within 48 hours from the conclusion of the concerned shareholders’ meeting to give a better picture of how the meetings are conducted. Listed companies to disclose figures in respect of immediately preceding quarter as well in addition to the existing requirements. Companies which opt to submit audited annual results within 60 days of end of financial year in lieu of last quarter results shall also submit the last quarter results along with the audited annual results. f) Due diligence records to be maintained by merchant bankers Merchant bankers to maintain records and documents pertaining to due diligence exercised in pre-issue and post-issue activities of issue management, takeover, buyback and delisting of securities so as to ensure that all the merchant bankers follow same standards of compliance and the level of due diligence can be checked during inspection of merchant bankers by SEBI. g) Review of net worth for Registrars to an Issue and Share Transfer Agents Considering the present day capital needs for setting up a RTA business with adequate infrastructure, the Board has approved amendments to SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 stipulating the new net worth requirement of RTAs which are as follows: Category I RTAs - Rs. 50 lakh. Category II RTAs - Rs. 25 lakh. Further, the existing RTAs have been granted a time period of three years to increase their net worth. h) Decentralization of work to Regional Offices and opening of Local Offices The Board approved the proposal relating to strengthening of Regional Offices (ROs) and opening of new Local Offices (LOs) at state capitals in phased manner. Head Office will continue to deal with policy and important operational issues. Additional operational work will be delegated to Regional Offices.RANJ & Associates www.ranj.co.nr Page 14 of 17
    • Corporate Updates August 2011 Due date for payment of annual membership and certificate of practice fee extended The Annual Membership fee and Certificate of Practice fee for the year 2011-12 became due for payment w.e.f. 1st April, 2011. The last date for payment of annual membership fee was 30th June, 2011 which has now been extended upto 31st August, 2011. Members who are yet to pay the fees may pay the fee latest by 31st August, 2011. The last date for payment of Certificate of practice fee is 30th September, 2011. Entitlement of number of trainees by a PCS The Council at its 201st meeting held on 23rd-24th June, 2011, in supersession of its earlier decision which was notified in October, 2008 issue of Chartered Secretary, has decided that with effect from 24th June, 2011, the number of trainees to be sponsored by the Company Secretary in Practice (PCS) including a partner in a firm of Company Secretaries, will be equal to the number of years of continuous practice of the concerned member subject to a maximum of twenty trainees. A PCS with two years of continuous practice will be entitled to engage only one trainee. If the PCS surrenders his certificate of practice and starts his practice after a gap, he will be entitled to have the same number of trainees as he was entitled when he surrendered his certificate of practice. 39th National Convention of Company Secretaries at Agra The 39th National Convention of Company Secretaries is to be held during October 13-15, at Hotel Jaypee Palace, Agra. The theme of the event is “Corporate Dynamism and Innovative Professionalism”. The Members who wish to contribute papers for publication in the souvenir or for circulation at the Convention may send the same through email [sudhir.dixit@icsi.edu] with one hard copy to Dr. S K Dixit, Director (Academics), ICSI. …………RANJ & Associates www.ranj.co.nr Page 15 of 17
    • Corporate Updates August 2011 DISCLAIMER The above information is only indicative and solely for informational purpose and private circulation. RANJ & Associates, Company Secretaries intend to, but do not guarantee or promise that it is correct, complete / up-to-date. We expressly disclaim any liability to any person in respect of anything, and of consequences of anything done, or omitted to be done by any such person in reliance upon the contents of this document. The information in this document is as of July 31, 2011.RANJ & Associates www.ranj.co.nr Page 16 of 17
    • Corporate Updates August 2011RANJ & Associates www.ranj.co.nr Page 17 of 17