CS employment in two companies

[CS Ankit Misra]

Dear Professionals,

One of my friend is working as ACS in a listed Company. However, her management is forcing her to file her F 32 in an unlisted group company due to 383A applicability. 

Will advice whether it is possible for a CS (whose 32 is filed) to continue to work as ACS of another company?

If not, where it is written? As a person can become MD of 2 company, director of 15 companies, then why not a CS can work with 2 group companies?

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regards,

CS ANKIT MISRA

KANPUR

8009968692

 Please do not print this email unless absolutely necessary

[Premnarayan Tripathi]

Dear Friend,

 

At the outset your stand is not clear as to whether you are in CONSENT with what management wants? Or you are AGAINST it?

 

1.      If a CS is working as CS and Form 32 is filed in a particular company whether listed or not, then he/she can not file Form 32 for any other Company.

 

2.      An MD can be appointed in 2 cos. and can be director in 15 cos. ONLY because it is permitted under Company Law. There is no such express permission (nor it should be) in Company Law w.r.t. appointment of CS.

 

3.      A CS-in-whole-time-employment technically/rationally/practically/legally can not ‘employ’ in two companies.

 

Thanks & regards,

CS. Premnarayan Tripathi

PRT & Associates,

Company Secretaries

201, Sarthik Square, Nr. GNFC Info Tower,

S G Highway, Ahmedabad - 380054

(M): +91 89800 26497

E-mail: premnar...@gmail.com

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[CS Shainshad Aduvanni]

Dear Sirs,

Here we have to see the Threshold limit. If the paid up capital is Rs.5 crores or more, then Whole Time CS is mandatory. If it is less than the above threshold limit, there is no legal prohibition.

So, if Form 32 has filed for Whole Time CS, then another Form 32 cannot be filed for different Company.

Regards

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CS Shainshad Aduvanni
Company Secretary
Coimbatore

09841414439

[CS Ankit Misra]

Mr. Premnarayan,

Thanks for your response but i not talking about filing F 32 at same time in 2 companies but i am asking that if a cs is working as ACS in a listed company (F 32 not filed), then can he / she file F 32 as CS in group company while continuing with earlier company. If not, then where it is prohibited. 

Since ACS is not a regulatory designation as CS, so why not he can work in 2 company at a time. There are so many CS who have there 32 filed in company but also running there own company (ies) where they are director

[CS Ankit Misra]

Sir,

I know this provisions, but i think my query is still not clear to you. I am briefing it again:

Let us suppose u r working in a listed company as ACS where your 32 is not filed. Then your senior came to you and say ki Mr. Shainshad we are filing your F 32 in our group company due to 383A applicability but you will keep receiving your salary from this listed company'.

This means your 32 will be filed for another company and you will be on roll for other company.

Will it be any violation?

[Prem Tripathi]

Dear Friend,
Form 32 filing for appt of a CS in not a mere formality.  When it's filed for a CS, he/she will be be considered as 'CS in whole time employment'.

How one can be whole time employee in two cos.

Only because in few cos. this practice is adopted, it will not authentic irregularities......

[CS Shainshad Aduvanni]

Dear Sir,

I have seen this practice in many Big Corporates. Salary will be paid by Listed Company where the Form 32 has not been filed. But Form 32 will be filed in group Companies.

This is what is happening in the Corporate.

Regards

[Ainesh Jethwa]

But this would be considered as violation.

As you are in pay roll of ABC Ltd. therefore from Income Tax perspective you are employed in ABC Ltd. and your Form16 generates from ABC Ltd. 

But from ROC perspective you are employed in XYZ Ltd. where your Form-32 is filed up. 

This things are contradicting each other.

Regards,

Ainesh

[CS Ankit Misra]

Income tax no where ristrict a person to work at 2 or more places simultanoeusly. If it would be, then companies act would not allow a person to become MD of 2 companies or Director of 15 / 20 companies

[Ainesh Jethwa]

I just meant CS can't work on Whole-time basis at two places. Can he ?

Giving example of Income Tax department was to support views of Mr. Shainshad. 

MD can be appointed in two Companies as he has given substantial power of management to run Companies. 

But I don't think whole-time director can be appointed in more than one Companies. 

Further Director can be appointed in 15-20 companies but as Non-Executive director / Executive director but not as full time-employees. 

View solicited

[Venkat Ragavan]

Dear Mr.Ankit

As per your statement "u r working in a listed company as CS where your 32 is not filed. but they  are filing your F 32 in your group company due to 383A applicability but you will keep receiving your salary from this listed company'.

This means your 32 will be filed for another company and you will be on roll for other company.

It will not be a violation and practically it is acceptable

Thanks & Regards

V.Venkat

[CS Ankit Misra]

Dear Ainesh,

Thanks for your prompt response. Will you pls explain me the difference between Executive Director and Whole-Time Director?