CS Articleship – Company Secretary Practical Training

Table of Contents

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

1. Introduction

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.

2. 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.

3. 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 in the entities enlisted below:

For more details, students can refer – https://www.icsi.edu/media/webmodules/ICSIStudentTainingGuidelines15012024.pdf

4. 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.

5. 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:

• Compliance

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

• Corporate Governance and Secretarial Services

1. 1. Corporate Governance
   2. Secretarial/Compliance Audit and Certification Services

• Corporate Laws Advisory and Representation Services

1. 1. Corporate Laws Advisory Services
   2. Representation Services
   3. Arbitration & Conciliation Services

• Financial Market Services

1. 1. Public issue, listing and Securities Management
   2. Takeover Code, Insider trading, Mergers & Amalgamation
   3. Finance & Accounting Services
   4. Taxation Services

• Management Services

1. 1. General/Strategic Management
   2. Corporate Communication and Public Relations
   3. Human Resources Management

6. Working Hours, Leaves and Stipend

Working hours of training may be fixed by mutual consent of trainee & trainer generally between 8:00 am to 8:00 pm subject to a minimum of 8 hours per day

The leaves applicable for study and examination are to be granted for the purpose of CS examinations only (all stages) and not for any other course. The leaves of 52 days (including 31 days of examination leaves) shall be applicable to Executive Programme pass students for preparation of the Professional Programme examination only. However,
effective from 1st June 2022, any student who starts his training after passing the Professional Programme, shall be eligible for 21 days of casual leave only.

Every Company Secretary in Practice or Company engaging the trainee shall be required to pay a monthly stipend of Rs. 5,000 (minimum) to the trainee or as determined by the Council from time to time. The stipend is also required to be paid for the probation period.

7. Transfer Rules

The first two months of the training shall be treated as the probation period. A trainee is free to take transfer during the probation period by serving a 14 days’ notice. The training undergone by the student during probation shall be taken in the records of the Institute and shall also be counted in the total period of long term training.

For the remaining period after the probation, no transfer shall be allowed. However, in exceptional cases as specified cases, transfer may be allowed during this period. Even voluntary transfer is allowed if there is mutual consent and 60 days’ notice is given for a smooth handover.

8. 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).

9. 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”.