CS Nitesh, a Company Secretary in practice gave an advertisement for staff for his office in newspaper as follows - "A reputed firm of Company Secretaries at West Mumbai requires Executive passed candidates on an urgent
CS Executive · Company Law · PYQS · June 2024
CS Nitesh, a Company Secretary in practice gave an advertisement for staff for his office in newspaper as follows - "A reputed firm of Company Secretaries at West Mumbai requires Executive passed candidates on an urgent basis....... remuneration commensurate with the best in the industry ....... only local candidates are preferred....". He also outlined the number of trainees who have completed training from his office and number of appearances made before NCLT in the advertisement. With reference to the provisions of Company Secretaries Act, 1980 read with Schedules thereto comment if there is any professional misconduct in the following circumstances.
Answer & Explanation:
Clause 7 of Part I of the First Schedule to the Company Secretaries Act, 1980 provides that a Company Secretary in Practice shall be deemed to be guilty of professional misconduct, if he - "Advertises his professional attainments or services, or uses any designation or expressions other than Company Secretary on professional documents, visiting cards, letterheads or signboards, unless it be a degree of a university established by law in India or recognised by the Central Government or a title indicating membership of the Institute of Company Secretaries of India or of any other institution that has been recognised by the Central Government or may be recognised by the Council. In line with the above, advertisement by a Practicing member for staff for his office in the press should in no way savour of any advertisement of professional attainments or services. The use of certain adjectives like "a reputed firm", "a well-known firm", etc. may be treated as inconsistent with the spirit of this clause. A practicing Company Secretary cannot include in his advertisement following particulars like the infrastructure available in his own office, details of Associate practicing Company Secretaries, details of his networking in other places within & outside India, infrastructure at such networked offices, number of trainees who have completed training from his office, certain landmark achievements like number of companies incorporated since he started his practice, number of appearances made before NCLT, CBDT, Tribunals, Regulatory Authorities, Commissions, number of Foreign Collaborations handled, number of Merger & Acquisitions handled, number of due diligence carried out etc. Thus, in the given case CS Nitesh can be held guilty of professional misconduct under clause 7 of Part I of First Schedule to Company Secretaries Act, 1980.
Topics: Company Secretaries Act, 1980
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