One of the most reputed professional courses is the Company Secretary (CS) course, divided into three levels: Executive Program, Professional Program, and CSEET (Company Secretary Executive Entrance Test). Once a candidate passes these exam stages, they will also have to complete the necessary training.
The route to becoming a company secretary (CS) in India includes an important phase called CS Articleship. This practical training program is an important part of the CS course, which provides students with the guidance of a professional company secretary or within a corporate setting.
What is the CS Articleship?
The CS Articalence, which is officially known as a practical training program, is an essential component of the CS syllabus designed to bridge the difference between educational knowledge and real-world application. It provides students practical experience in areas such as corporate laws, secretarial practices, compliance management, and corporate administration.
This training can be done with a company secretary in practice, a company that meets the prescribed criteria, or under any unit approved by ICSI. It aims to familiarize students with legal and procedural aspects of company law, filing requirements, board meetings, corporate restructuring, and more.
Understanding the CS Articleship
The Institute of Company Secretaries of India (ICSI) has introduced a structured training program that each CS student will have to complete. It also includes the
1. Corporate Leadership Development Program (CLDP)
2. Practical training
3. Executive development program.
Candidates passing the Executive Program will have to undergo 21 months of full-time practical training. This phase helps students understand the practical implications of corporate laws, compliance, and governance, preparing them for real-world challenges.
Eligibility Criteria for CS Articleship
To be eligible for CS Articleship, candidates have to pass the Executive Program of Company Secretary (CS) course. Additionally, passing 21 months of training under a qualified company, firm, or CS. Registration for professional programs is also encouraged during the articulation period for further progress.
Companies Who Eligible for CS Articleship
A CS can complete practical training under the supervision of a student.
- A practice company is registered with the Secretary (PCS) of ICSI.
- Companies with minimum paid-up share capital according to a full-time company secretary and ICSI criteria.
- Law firm and LLP with partners specialized in corporate and legal compliance.
- Government regulatory bodies such as the Ministry of Corporate Affairs (MCA), the Registrar of Companies (ROC), and other recognized organizations.
- The Bank and Financial Institute (RBI) is approved by the Reserve Bank of India (RBI).
Importance of CS Articleship
CS articleship plays an important role in shaping the professional capabilities of a candidate. There are some reasons here why it is necessary:
- Practical Exposure: Articleship exposes students to corporate law and practical nuances of compliance, which cannot be fully learned through books alone.
- Skill development: It honors major skills such as formation, communication, problem-solving, and advisory capabilities.
- Industry insight: Working with experienced professionals helps students understand industry practices, legal updates, and emerging trends.
- Professional Network: It provides opportunities for building a network of professionals and peers, which can be valuable in a career.
- Career Advantage: Experience during articleship increases employment and can give rise to pre-placement offers.
Skills Required During CS Articleship
Practical training helps students develop the necessary skills, such as
- Drafting of legal documents (agreements, notices, resolutions, and compliance reports).
- Understanding Corporate Finance (Financial Description, Compliance Filing, Taxation Act).
- Networking and communication (interaction with directors, professionals, and regulators).
- Problem and decision making (handling compliance issues, corporate administration challenges).
Duration of CS Articleship
The duration of CS Articleship is usually 21 months. However, ICSI provides flexibility through various routes:
- After the Executive Program, 21 months of practical training after passing the Executive Program.
- After the professional program, 12 months of practical training start after approval of the professional program.
Additionally, the Executive Development Program (EDP) requires 1 month before starting the article, and in some cases, special training of 15 days may be required.
Working Hours, Leaves, and Stipend
To be eligible for CS practical training, candidates must work during regular commercial hours. This means that they should take at least 8 hours a week during the practical training period, five days a week, or 40 hours a week. A candidate is allowed 52 days off during the 21-month training period. Additionally, trainees will receive the following monthly stipend (only payable by online transfer or check):
- If the trainee under PC is going through a period of training, then a minimum of Rs. 3,000 per month should be paid.
- If a company or other institution is undergoing training, then a minimum of Rs. 4,000 should be paid every month.
Work Profile During CS Articleship
During the CS article, students engage in various types of tasks that give them widespread exposure to the company's law and corporate administration.
- Major responsibilities can include drafting and filing various statutory forms and returns.
- Helping with board meetings and general meetings.
- Maintaining statutory registers and records.
- Advising on corporate compliance and regulatory matters.
- Handle the secretary's audit and diligence.
- Working on mergers, amalgamations, and corporate reorganizations.
- Contact with regulatory officials like the Registrar of Companies (ROC), Securities and Exchange Board of India (SEBI), and others.
Stipend for CS Articleship
ICSI has set minimum stipend guidelines for CS trainees:
- With a practice company secretary, the minimum is ₹ 3,000 per month.
- In companies/firms: minimum ₹ 4,000 per month (for the first year) and ₹ 5,000 (for later years).
However, the real stipend city may vary depending on the reputation of the firm/company and the performance of the student.
Tips to do Excellent in CS Articleship
- Be active: Show curiosity to learn and take initiative in tasks.
- Stay updated: Regularly follow legal updates, modifications, and circulars.
- Increase skills: Work on your communication, draft preparation, and analytical skills.
- Look for the response: Always ask your superiors for creative responses.
- Manage time: Effectively balance your study program with work commitments. Network: Create professional relationships with peers and masters.
Summary
CS articleship is a transformative phase in the journey of a company secretary. It not only provides practical risk but also shapes the professional approach of students, preparing them for a complex corporate world. To avail the maximum benefit of this period, approach it with dedication, curiosity, and a positive attitude. The experience you receive during your CS Article will serve as a successful and strong base for a full career.
