Although the term Secretary in a broader meaning refers to a person who is more suited towards organizing things and handling most of the affairs of any businessman or businesswoman; in the world of corporations, it has a much larger meaning.
If you are reading this article, then I am sure you are contemplating whether you should hire a company secretary for your business or not. So, before you walk down through that road, let’s find out more about Company or Corporate Secretaries.
Who is a Company Secretary?
A Company Secretary, by the Companies Act or laws designated for setting up of companies, is an officer of the company, who serves to be an asset in the long run. They are equipped to handle all legal matters of the company and are primarily charged with a lot of operational duties, which a company faces on a day to day level.Majority of the businesses these days may NOT be legally obligated to have a company secretary. However, having them on board is just like having an umbrella with you on an overcast morning, when you know that it might rain.
Company Secretaries play a pivotal role in the business and we’ll venture into these roles in a detailed manner.
Coordinating with the Board of Directors
The first and foremost task of the Company Secretary is to ensure that there is a proper channel of communication between the board and various other stakeholders of the business – including the employees. They ensure that all legal compliance is properly and adequately fulfilled by the board so that there is a swift flow of business.They are also responsible for the transcription of all effective communication in the meetings and presenting the same to the shareholders or the legal authorities if required.
Maintenance of the Registered Office
It goes without saying that a business may have more than one office. However, when a company is set up, they have to put one address for all legal correspondence as well as communication between the authorities and stakeholders with the company.A company secretary ensures all such information is sent to the appropriate departments and that the company is fulfilling all the requirements for a smooth nature of the business, away from illegal activities.
Annual General Meetings
Annual General Meetings are usually a grand-affair for any business as it involves the participation of all the stakeholders of the business – from the employees to the director and the shareholders as well. It is the day when all vital information and decisions are discussed and major changes are made to the company.A Company Secretary is equipped to call such meetings and ensure that all the statutory compliance is fulfilled by the company so that none of the resolutions passed ultra vires the company’s articles of incorporation. They are also entrusted with the minutes of this meeting along with its documentation.
Maintenance of Legal Records
A company secretary also has to maintain all kinds of statutory and legal records, which a company needs to maintain as per the law. They act as the custodian and executor of such records and ensure that it is well communicated to the authorities.Reporting to Authorities
Have you ever wondered how the wheels in a big company turn when it comes to legal and statutory compliance? Well, you do not need to wonder as the company secretary takes care of this. They are assigned by the law to act as the agent of the company on matters of representation in the eyes of the authorities.They also take care of all the changes to the company’s framework and ensures all guidelines are fulfilled during its process
Coordinating with the Auditors
Most of the businesses prefer to go for auditing in order to ensure that their books are financially sound and the business is doing all things legally. A company secretary also has to file the Auditors’ Report and ensure that it has reached the right hands and seen by the right eyes, as well.Company Secretaries often take up even more work than what is mentioned above and can also offer their advice on other aspects of the business as well. So now, when all your doubts have been answered hire a professional and able Company Secretary for your organization.
