Companies Act, 2013 · Chapter XXIA: Producer Companies · In force
This section requires certain Producer Companies to have a whole-time secretary and sets out the qualifications and penalties related to this requirement.
Penalty
(3) If a Producer Company fails to comply with the provisions of sub-section (1), the Company and every officer of the Company who is in default, shall be liable to a penalty of one hundred rupees for every day during which the default continues subject to a maximum of rupees one lakh:
The section, clause by clause
What the section says
In plain terms
(1)Every Producer Company having an average annual turnover exceeding five crore rupees or such other amount as may be prescribed in each of three consecutive financial years shall have a whole-time secretary.
Every Producer Company with an average annual turnover exceeding five crore rupees in each of three consecutive financial years must have a whole-time secretary.
(2)No individual shall be appointed as whole-time secretary unless he possesses membership of the Institute of Company Secretaries of India constituted under the Company Secretaries Act, 1980 (56 of 1980).
To be appointed as a whole-time secretary, an individual must be a member of the Institute of Company Secretaries of India.
(3)If a Producer Company fails to comply with the provisions of sub-section (1), the Company and every officer of the Company who is in default, shall be liable to a penalty of one hundred rupees for every day during which the default continues subject to a maximum of rupees one lakh:
If a Producer Company fails to have a whole-time secretary as required, it and its defaulting officers will be liable for a penalty of one hundred rupees per day, up to a maximum of one lakh rupees.
provisoProvided that in any proceedings against a person in respect of a default under this sub-section, no penalty shall be imposed if it is shown that all reasonable efforts to comply with the provisions of sub-section (1) were taken or that the financial position of the Company was such that it was beyond its capacity to engage a whole-time secretary.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.