Duties & Responsibilities By A Company Secretary
The term “company secretary” leads many people to believe that these individuals discharge only secretarial duties at corporate institutions. On the contrary, company secretaries play an important role in the administration of business organizations. They are treated as trusted advisers by company owners and other top executives like directors. In most jurisdictions, it is required by the law to appoint a qualified person on the post. Many small businesses who cannot hire full-time professionals engage legal secretarial practice consultants to help them perform the necessary functions. Let’s take a look at the responsibilities that such individuals have to shoulder at a corporation.
Maintaining Vital Company Records
The professionals are responsible for maintaining the statutory books of a company. This register includes the details of all the former and current directors and secretaries of the organization. It also contains the details of all shareholders since the inception of the company until now. The company secretary is also responsible for maintaining the register of charges related to the company’s movable and immovable assets. In addition to this, all the information related to employee stock options, securities which have been bought back by the organization, and renewed or duplicate shares must also be kept by the professional.
Scheduling Key Company Meetings
These individuals are also required for arranging the meetings between shareholders and the board of directors of a company. Their responsibility begins with issuing the notices for the meetings, preparing the agenda, providing necessary papers to the board and ends with recording and safekeeping the minutes of the meetings. Most of the top company secretary firms in India are engaged by corporations for performing this function according to the stated legal guidelines.
Ensuring Compliance With Applicable Legal Regulations
Every aspect of running a business is governed by one or more laws. A violation of any regulation can attract monetary fines and other penalties. In extreme cases, even the directors can be held liable for the infringement and can be punished by a court of law. Company secretaries, with their precise knowledge of all legal procedures, therefore play a key role in ensuring regulatory compliance. Whether it is a critical matter of holding a meeting or a routine task of changing the office address in legal records, these individuals know the correct protocol which needs to be followed.
Managing The Flow Of Information
These professionals are the link between company management, board, and other parties. The directors rely on the secretary to clear their doubts or get more information before a meeting. The management, on the other hand, depends on the individual to present the data to the board in an efficient manner. The secretary also ensures that all the necessary information related to the company is communicated to all shareholders. Efficient professionals insist on creating communication channels for exchanging information with all stakeholders. This enables the organization to get access to valuable feedback which can be used for improving its efficiency.
Building An Effective Corporate Governance Structure
Modern-day secretaries have become central to effective corporate governance initiatives at businesses. As mentioned earlier, they help the organisation in complying with all legal regulations. However, they are also responsible for educating the key stakeholders about ethical practices and good corporate values. They must advise directors about the impropriety attached to conflicts of interests. When such a case happens, they must ask the person in question to disclose all material facts. Moreover, the professionals must create a framework for holding meetings and sharing information in accordance with legal guidelines. This will ensure in keeping the organisation on the right side of the law.
Company secretaries are important figures of a corporate establishment helping in the efficient administration of the business. Organisations must engage professional company secretarial services to ensure they conduct their activities in a prescribed manner and maintain compliance with legal regulations.