This article revolves around what secretarial services in India are and their importance. Read below to know more.
Section 270 of the Companies Act of 2006 states that if a firm does not have a company secretary, the director or a director representative is responsible for all administrative and compliance tasks.
In order to minimise problems and reduce their administrative, regulatory, and governance practise requirements, many private corporations therefore employ a company secretary. A company secretary is required for public firms but not for private ones.
Who is the Secretary of a Company?
A qualified person who accepts responsibility for ensuring the smooth operation of the business’s administration is known as a company secretary. They are also responsible for administering shareholder administration, advising the firm board of directors, and adhering to governance, economic, and legal criteria.
The company secretary serves as a conduit between the government, stakeholders, or other entities and the board of directors or other higher authorities. They also represent the company and communicate some information to the public on its behalf.
They keep a record of all information, including minutes from meetings, changes to directors’ roles, declarations of new policies, and other internal matters. In any organisation, they do difficult, intricate, and accountable responsibilities.
A full-time administrative assistant can now be hired by many organisations, or the task can be outsourced online. That, of course, depends on the individual and how much authority and responsibility you wish to delegate to a third party. By hiring a Companysecretary Auditor, you can run your company more smoothly and efficiently.
They have a more comprehensive viewpoint on topics like fixation, effective management, taxation, transportation, and meeting schedules. Many small businesses or fledgling companies lack the resources to employ a company secretary.
Why Company Secretary is Important
The duties of a Company Secretary should theoretically include all necessary administrative tasks. But generally, they take on the functions of the board, a private company, and stockholders.
They are in charge of making sure that board procedures are followed and that the necessary paperwork is sent to the board members ahead of meetings. The secretary is in charge of keeping an eye on how the business is conducted properly and in accordance with the law. They will act as the shareholders’ go-to resource for information about corporate laws.
Since they ensure that the business conforms with the law, they must be knowledgeable about company law, maintain and store the registers in case of an inspection, and produce director reports and accounts.
To resolve any concerns regarding share transfers, the secretary will get in touch with the shareholders.
They would be in charge of managing any pre- and post-board meeting preparation and documentation, such as notifying all managers of the convention’s time, date, and location, preparing agendas, taking minutes, producing a document after the meeting, and informing the appropriate parties of any decisions made during the gathering, such as notifying the regulatory information system if a choice was made regarding the payment of earnings.
What Struggles does a Company Or Firm Face?
A few common struggles that any organization may usually face are listed below:
- Complex infrastructure for management: The board of directors and any higher authority cannot do all the work independently. They cannot schedule meetings, communicate internally and externally, spread the news of upcoming appointments, register for events, comply with tax and other regulations, etc. To complete this task, they want a trained and certified specialist
- Representation: The board of directors frequently wants to communicate with its shareholders, but they can’t always be contacted. For this reason, they need a spokesperson to speak on behalf of the company and convey its message
- Smooth operation: Every firm will run well if there are enough employees in charge of managing the various sections. If the directors’ board agrees, they need a qualified person who can oversee all the departments and support them in making important decisions for the company.
Do you aware of the Must Read Topic: What You Need to Know About Being a Company Secretarial in India
What Roles does a Company Secretary Have?
A Company Secretary will be responsible for the following:
- Filing and keeping statutory books up to date: Keeping statutory books up to date is a complex and time-consuming operation. It could result in fines and penalties if done incorrectly.
- Meeting planning: A corporate secretary is entirely responsible for planning board of directors meetings, including creating the plan, notices, supporting materials, and data, as well as meeting minutes. They also ensure to comply with all board-related regulatory compliance standards.
- Keeping the board updated: A company secretary is responsible for maintaining the company house aware of all classified intel and matters, including changes to directors’ names and addresses, applications, nominations, and other allotments.
- Interaction with the shareholders: A company secretary is accountable for representing the corporation and sharing data related to shareholding, such as information on dividends, registration or transfer of share ownership, etc.
- Legal compliance: A company secretary is accountable for ensuring compliance with the company law. They establish contact with the investors and the outside world as the first representatives.
Conclusion:-
Thus, a company’s secretarial services are crucial to understanding the company’s growth infrastructure. In case you need any legal help in appointing a Company Secretary, get in touch with Vakilsearch.
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