ICSI cautions members on resorting to unscrupulous practices by undertaking multiple appointments and resignations solely for e-form INC 22A (ACTIVE) compliance
Dear Professional Colleague,
As per Rule 25A of the Companies (Incorporation) Rules, 2014 inserted through the Companies (Incorporation) Amendment Rules, 2019 and further amended through the Companies (Incorporation) Fourth Amendment Rules, 2019, “Every company incorporated on or before 31st December, 2017 shall file particulars of the company and its registered office, in e-Form ACTIVE (Active Company Tagging Identities and Verification) on or before 15.06.2019”.
The above initiative of the Ministry can very well be considered as a move to strengthen the existing governance structure thereby bringing in greater stability in the corporate scenario.
However, it has been noticed that the compliance of the same is not being undertaken in true letter and spirit and that some of the corporates and professionals are resorting to unscrupulous practices by undertaking multiple appointments and resignations, solely for the purpose of compliance pertaining to e-form INC 22A (ACTIVE) without understanding and realizing the significance of this compliance.
For us as professionals, it needs to be understood that the wrongdoing of a few members shall portray the entire profession in a bad light and raise concerns regarding the integrity and ethics of governance professionals.
In light of the above as well as the long-term impact of such activities, members of the Institute are advised to ensure complete integrity in their conduct and pursue the profession in an ethical manner.
It may please be noted that disciplinary action against such erring member(s) will be initiated under the Company Secretaries Act, 1980.
Regards,
(CS Ashok Kumar Dixit)
Officiating Secretary
The Institute of Company Secretaries of India
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