We all know that the importance of effective corporate governance continues to be critical in today’s environment. Due to the global financial crisis, there has been an increased focus on the duty of the company secretary. Many business people will understand the prominence of the corporate secretarial services plays a pivotal role in organizing the work of the board of directors. Also, managing board evaluations and taking the board meeting minutes are combined with administering communication with management. Their position in a firm is very important, apart from acting as a link between the board of the organization and the various stakeholders, government, and other regulatory authorities. Here, we are going to attain some beneficial information regarding the company secretary in the upcoming session.
Required skills from the company secretary
A company secretary must have a lot of skills and knowledge: to prepare for a meeting while ensuring that corporate governance compliance is up to date, it needs good communication between management and the board of directors. He/she should understand the business and the context of their organization. You can check, they are able to translate governance theory into the appropriate frameworks, policies, and processes for their organization. They have to develop and implement solutions in many ways. Ensure that a good secretary must need proper planning skills. This is essential for the board, and committee meeting cycles are schedule-driven. External and internal compliance obligations must be on time.
Keep an eye for detail, and you must ensure that the work of the board, as well as the larger organization, is executed correctly without any omissions. The company secretary should assist the chairman with all development processes, including board evaluation and training. Make sound judgment is a key requirement for a secretary. They also play a significant role in communicating with external stakeholders such as investors and clearing the other professional queries. They should work closely with the chairman and the board to ensure that effective shareholder relations are maintained.
Duties of a company secretary
A secretary is legally responsible for acting on the company’s behalf to handle specific requirements written into the Companies Act. This will also include the preparation of annual return; failure to file an annual return may impact in the company being struck off and the directors being prosecuted. They are following in detail:
- In annual returns, they are giving particulars of share capital and directorships held.
- Provide outlining the company’s assets and liability in financial statements.
- Depending on the company, the secretary may also need to file an auditor’s report.
- Responsible for maintaining statutory books and records, which means the register of directors and changes held on the company assets.
- They need to safeguard legal documents, including share certificates and other official documentation.
The role of the company secretary is crucial one of supporting the directors in ensuring that the company is a complaint. Once you decided to appoint them, your organization should look into all details of how they can be valuable in addition to the company/firm.