CS Articleship – Company Secretary Practical Training

Table of Contents

1. Eligibility and Training Period
2. Firms/ Companies Eligible for Providing Practical Training
3. Professional Skills Acquired During Practical Training
4. Scope of Work/ Areas of Training
5. Working Hours, Leaves and Stipend
6. Transfer Rules
7. Project Report
8. Conclusion

Company Secretary (CS) Course, one of the most prestigious professional courses, consists of three levels – CSEET (Company Secretary Executive Entrance Test), Executive Programme and Professional Programme. Further, a candidate is also required to undergo necessary trainings besides clearing these examination stages.

The Institute of Company Secretaries of India (ICSI) passed a new training structure which requires following training programmes to be undergone by CS students:

1. Executive Development Programme (EDP)
2. Practical Training
3. Corporate Leadership Development Programme (CLDP)

The 21 months Practical Training/ Articleship is to be completed by CS students after clearing Executive examination, on a full time basis. This training helps the students learn the practical applications of the theoretical education scheme and also provide an opportunity to students in acquiring on-the-job work experience of a professional nature. This training serves as a great tool in introducing the candidate to the industry and portray a clear picture of the professional expectations once he/she clears the examination.

1. Eligibility and Training Period

The practical training is required to be completed for 21 months as per the ICSI rules. Also, it can only be undertaken after completing one month EDP.   

Note: Students after clearing Executive examination have to undergo Executive Development Programme (EDP) for one month duration.

2. Firms/ Companies Eligible for Providing Practical Training

Candidates undertaking Practical Training must work on a whole-time basis during normal business hours. As per the Institute guidelines, the training can be undertaken by the candidate:

1. in a company having a company secretary in whole time employment; or
2.  under a Company Secretary in whole-time practice; or
3.  in any other body corporate or institution or organisation or entity fulfilling such criteria as may be determined by the Institute.

The entities in which CS students can undergo their Practical Training are enlisted below:

• • • Practising Company Secretary (PCS) having Certificate of Practice from ICSI.
    • Companies (whether public or private; listed or unlisted) having paid-up share capital of Rs. 50 lakhs or more.
    • Company Limited by Guarantee having gross annual receipts of Rs. 1 crore or more as per last audited financial report.
    • MCA and its Offices (ROC, RD & office of OL, etc.)
    • General Law firms with a minimum of 5 partners and a minimum of 5 years of experience.
    • Limited Liability Partnership (LLP) with at least half of its partners being ICSI members and a net worth/capital contribution/turnover of not less than Rs. 50 lakhs.
    • All banks recognized by RBI.
    • Financial institutions with a minimum of Rs. 10 lakhs in gross fixed assets and a minimum of ten years of experience.
    • Universities recognized by UGC.

3. Professional Skills Acquired During Practical Training

The following are some of the important skills a CS trainee can acquire during the practical training period:

1. Drafting
   It is one of the most important engagements of a Company Secretary to draft legal documents like resolutions and notices besides drafting responses to notices, agreements, etc. This ultimately will lead the trainees to understand various provisions of the Companies Act, 2013 which can help them in the examinations.
2. Exposure to finance field
   CS trainees can acquire valuable hands-on experience by collaborating with finance experts during the preparation of financial documents.
3. Communication & Networking
   During the training, one can learn ways to communicate and present his/her ideas and observations in an official environment. Such skills can be acquired while dealing with banks, writing e-mails on behalf of the companies, attending and taking notes of conference calls, etc. Further, meeting directors and other senior officers of various companies can also provide a networking opportunity that can be capitalised by the trainee on becoming a Company Secretary.
4. Initiative
   During the training period, one can learn the importance of taking initiative and being open to new ideas. This will lead to inculcating a problem-solving attitude for candidates in every sphere of life.

4. Scope of Work/ Areas of Training

As defined by the ICSI, a Company Secretary is

• • an in-house legal expert; a compliance officer of the Company;
  • an expert in corporate laws, securities laws & capital market and corporate governance;
  • chief advisor to the board of directors on best practices in corporate governance; and
  • responsible for all regulatory compliances of company.

Thus, a Company Secretary qualification can be described as a multi-disciplinary professional qualification. Accordingly, during the Articleship period, the candidates may be exposed to one or more of the following areas:

1. Compliance

• • • Certification of E-Forms
    • Minutes of Board meetings/Annual general meetings
    • Other compliances w.r.t. Companies Act
    • SEBI & SCRA Act compliances

2. Corporate Governance and Secretarial Services

• • • Corporate Governance
    • Secretarial/ Compliance Audit and Certification Services

3. Corporate Laws Advisory and Representation Services

• • • Corporate Laws Advisory Services
    • Representation Services
    • Arbitration & Conciliation Services

4. Financial Market Services

• • • Public issue, listing and Securities Management
    • Takeover Code, Insider trading, Mergers & Amalgamation
    • Finance & Accounting Services
    • Taxation Services

5. Management Services

• • • General/ Strategic Management
    • Corporate Communication and Public Relations
    • Human Resources Management

5. Working Hours, Leaves and Stipend

Candidates undertaking CS Practical Training must work during normal business hours, which must be at least 8 hours per day for 5 days or 40 hours per week for the duration of the Practical Training.

A candidate is permitted to have 52 days leave in the entire 21 months of training period. Further, the monthly stipend to be paid (through cheques or online transfers only) to trainees is:

• • If undergoing training under PCS – Minimum amount of Rs. 3,000 per month.
  • If undergoing training at company/ other entities – Minimum amount of Rs. 4,000 per month.

6. Transfer Rules

A CS trainee has to give a notice of minimum 45 working days to his/her trainer in writing for obtaining a transfer in Practical Training, citing reasons for the same. The resignation letter must be handed over personally against proper acknowledgment receipt. Maximum two transfers are allowed during the entire duration of training as per the Institute regulations.

7. Project Report

Students are required to prepare a Project Report on the basis of his/her Practical Training under the guidance of his/her trainer and submit the Report to the Institute at the time of undertaking Corporate Leadership Development Programme (CLDP).

8. Conclusion

With increased focus on corporate governance, constant changes in the regulations, etc. the role of Company Secretaries has been extended and responsibilities have been increased multi-fold such that the CS is now seen as the guardian of the company’s compliance with legislative requirements.

In such an environment, the Practical Training seems to be an indispensable tool in training a person becoming adaptable to fast changing circumstances and to be an industry-ready professional. This Practical Training prepares students for real challenges in professional life. To conclude, in the words of Anton Chekhov,

“Knowledge is of no value unless you out it into practice”.

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