A group of people who contribute money or money’s worth to a shared resource pool and work together to achieve a common goal is referred to as a company. A corporation that registers under the Companies Act of 2013 gains the status of a legal entity with a distinct legal identity. Secretarial Compliance & Secretarial Audits have been made mandatory for a particular type of firms in order to spot instances of non-compliance and take corrective action to protect the interests of diverse stakeholders. The following are among the primary characteristics of a business registered or incorporated under the 2013 Companies Act:

• A corporation receives the status of an artificial judicial person identity upon registration under the 2013 Companies Act, which is distinct from that of its members and directors. This feature allows a shareholder or member to contract with the company and to bring legal action against the corporation or be sued by it. A business can also sign contracts, buy property, open bank accounts, borrow money, and take on liabilities.

• Members of the company are not responsible for the debts of the firm because the company is independent from them and acts as such. Their liability is capped at the value of the shares they own or at the value of the guarantee.

• Regardless of the differences in its membership or directors, the business is a legal fiction with a perpetual existence.

• A person or a firm cannot sign their own name because they are artificial entities. As a result, it necessitates the creation of a common seal that can be applied to choices taken on the company’s behalf.

All listed businesses and its asset unlisted subsidiaries are required to submit a Secretarial Compliance Report to the stock exchanges where the firms’ securities are listed within 60 days of the end of the Financial Year in accordance with Regulation 24A of the SEBI Regulations (LODR). The SEBI Act, its regulations, circulars, orders, and guidelines, which are a comprehensive set of laws with extensive coverage over the capital market, are the only laws covered by the secretarial compliance report.

Every company that is incorporated under the Companies Act is required to comply with a number of regulations. These are a few of the compliances:

• Assignment, stipulation, compensation, and retirement of the company’s directors;
• The company’s statutory auditors are appointed;
• Calling and running a Board of Directors meeting;
• Organising and holding the annual general meeting of the shareholders/members
• Creating and presenting the company’s yearly reports and maintaining its accounting records on a regular basis;
• Submitting annual financial accounts to the company’s registrar;
• Upkeep of accounting records in accordance with the accrual system;
• Notification of deposits, loans, etc. to the Registrar of Companies

The repercussions of non-compliance are extensive and foresighted.