The Institute of Company Secretaries of India will now be able to induct members from regulators as well as sectoral experts in its secretarial and auditing standards board after recent amendments by the government.
The move is expected to give the ICSI more teeth and perspective when making policy decisions, which will improve corporate governance. The changes have been brought through amendments to the Company Secretaries Regulations, 1982.
The ICSI, country’s only recognised professional body for developing and regulating the profession of Company Secretaries, can now form a Secretarial Standards Board and an Auditing Standards Board, both of which can include eminent Company Secretaries in employment or practice, as well as representatives from regulatory authorities.
Previously, the ICSI had a secretarial standards committee and auditing standards committee comprising members of the Council of ICSI.
Speaking to FE, Manish Gupta, president, ICSI, said: “Now, the boards will have professionals from all across, with varied exposure and expertise, as part of the standard-setting procedure. This will further the cause of good corporate governance.”
The amendments will not just strengthen the company secretary profession but will bring the much-needed diversity of thought and approach, support, industry-oriented outlook, and advice of some of the most experienced minds in the country, Gupta added.
The amendments have also empowered it to set up an Academic Board that would be “entrusted with the task of planning and implementation of all academic activities” including scanning of the economic and regulatory environment; designing the syllabus and its contents; designing the mode of education; assessing and finalisation of the training requirements; designing the mode of examination and evaluation system as well as recommending necessary changes to the Council, as and when required.
Gupta noted that the constitution of the Academic Board will provide a systematic and streamlined process of development and updating the syllabus taking into consideration the economic, regulatory, and technological changes impacting the profession. “In fact, persons of eminence and brilliance as part of members of the Academic Board will help in strengthening the base of the Company Secretary profession by bringing in the dynamics of the markets and industry in the Company Secretary course and syllabus,” he said.
Apart from a chairperson, who shall be a person of eminence or holding or has held the office of vice-chancellor in any university or deemed university or any recognised management institute, the academic board would have 14 members, including a professor in accountancy, finance, law or business management from any University or deemed university, a representative of the ministry of corporate affairs, one person to be nominated by the Chambers of Commerce and Industry, two members of the ICSI as well as eminent persons from the legal profession, IT and human resources.