Liabilities of a Company Secretary According to Company Secretary 2013

Liabilities of a Company Secretary is divided into two types Statutory Liability and Contractual liability.

Statutory liabilities of a Company Secretary

Default in Complying with name requirements – Fine of Rs. 1000 every day during which the default continues that cannot exceed Rs. 1 Lakh.
Default is filing the return on the allotment – Fine Rs. 1000 every day during which the default continues or Rs. 1 lakh whichever is less
Default in delivering Share Certificates /Debenture Certificates on time – Fine up to Rs. 5 lakh
Default in filing annual return – Fine ranging from Rs. 50,000 to Rs. 5 lakh
Default in holding Annual General Meeting – Fine up to Rs. 5000/- during which the default continues extending to Rs. 1 lakh
Failure to record minutes of the meeting – Fine upto Rs. 500/-
Default in providing the P/L and B/S at AGM – Fine of Rs. 25,00 extending up to Rs. 1 lakh or imprisonment up to 6 months or both
Failure to provide notice about Board meeting – Fine upto Rs. 1000
Failure to maintain the register of members – Fine Ranging from Rs. 50,000 to Rs. 3 Lakh

He is liable for any negligence on part of his duty. He may be dismissed.
He must not do anything beyond his authority, if he does he will be personally liable for the loss
He is under the obligation to not disclose any secret information about the company to outsiders
He is liable for any secret profits made by him on account of his position
If the Company Secretary commits any fraud, he must indemnify to the company for any loss that occurred.
He derives his power from BoD therefore he should carry orders from BoD.

Majority of the contents in this post is taken from bbamantra.com. We are thankful to them.

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