Lalit Kumar, partner in law firm J Sagar Associates, said: ‘It is a known fact that many big companies both in terms of turnover and capital are registered as private limited companies…So now with the Company Secretary not being compulsorily required in these big private companies it will become critical to see who will ensure the compliance of all these provisions.’ 

Bank lending

Private companies will escape requirements on compliance audits and the appointment of company secretaries. But, if they want to raise finance from banks, they may need to comply in order to be looked on favourably by lenders. Source: The Hindu Business Line