Company Secretaries (CS) help businesses handle their admin and make sure they follow rules and laws. They do more than just this, though. A CS helps with business planning, managing money, and connects the company with its leaders, partners, and government bodies. With their deep knowledge of business rules, they can even start their own businesses.
A company secretary (CS) is a crucial management and administrative component in any business.
As one of a company’s legal representatives, he handles a variety of regulatory activities, such as incorporating the business, properly producing and analysing financial reports, submitting annual returns, dealing with frequently updated laws, etc.
Additionally, he plays a significant part in the company’s board of directors’ incorporation of laws, corporate governance, strategic management, task management, capital markets, and securities laws. In essence, a company secretary serves as the organization’s in-house legal advisor and compliance officer.
Who Is a Company Secretary?
An authorized member of the Institute of Company Secretaries of India (ICSI), a company secretary performs duties as specified by the institution and complies with operational norms and regulations outlined in the Companies Act.
The Companies Act also abides and grants each company secretary unique status so that he can serve as a Key Managerial Personnel (KMP) and contribute his knowledge as an employee in every:
- Private company with at least Rs. 5 crore in paid-up capital.
- Public Corporation with a paid-up capital range of Rs. 5 to Rs. 10 crore.
- A business secretary has a multidisciplinary background and is known for having many roles and responsibilities.
This article will guide you with some important aspects of what role a Company Secretary plays as a business benefactor.
Role of CS As a Business Benefactor
The company secretary is an essential component and must diligently fulfill his duties. He must ensure that all business practices adhere to all legal standards in addition to acting as a legal mentor; otherwise, he could be fired for dishonesty or violating the company’s legal rights and face consequences for misconduct.
Duties as per the Companies Act:
To begin and carry out incorporation procedures, such as authenticating the paperwork and processes used in registration, ensuring the delivery of registration and allotment information to the registrar, applying for an increase in share capital, monitoring the delivery of share certificates of allocation, keeping track of share warrant holders, complying with the law and filing annual returns, releasing the statutory declaration to receive the commencement certificate as well as managing the statutory books among other things.
Duties as per the Income Tax Act:
To confirm and submit attested returns and forms; to supervise the authentication and filing process of TDS (Tax Deducted at Source); to ensure that the correct amount of TDS is being deducted from employees’ salaries; to ensure that TDS reports are kept up to date; and to guarantee that TDS is duly submitted to the government.
Duties as per Other Acts:
Obtaining government approvals; adhering to regulatory requirements for industrial disputes; the FEMA Act; the State Insurance Act; the Depositories Act 1996; and the Foreign Exchange Management Act; as well as monitoring and adhering to numerous legal regulations such as labour laws, competition laws, environmental regulations, etc.
Advising authorities and the BOD (Board of Directors) on risk management, corporate social responsibility, brand equity and image building, managing the company’s intellectual property, maintaining positive stakeholder communication, and authorities and government.
What Are The Responsibilities of CS as a Business Benefactor?
CS as a Business Benefactor: The Companies Act grants a company secretary specific authority, including the ability to carry out company promotion and incorporation, handle company audit and certification services, sign annual returns, handle business transformation and takeovers, transparently scrutinize reports and voting procedures, administer revival of sick companies, join the Company Law Tribunal as a technical member, and conduct tax and corporate affairs investigations.
CS as an Auditor: The Companies Act gives a company secretary the authority to annex a Secretarial Audit Report to the authorities in form MR-3 to ensure that the company complies with the policies outlined in general laws and legal acts and to report any egregious instances of fraud discovered to the government in order to ensure corporate discipline and compliance with the law.
CS as an Advising Agent: CS serves as an advisor in cases involving the following: the issuance of shares; the drafting of proposals, sale letters, and other securities-related documents; private placement and buyback of shares; the raising of funds from international markets; the syndication and documentation of loans; income tax planning; the drafting of legal documents; matters relating to intellectual property rights; the direction of merger, amalgamation, and joint venture policies, among other things.
Duties of a Company Secretary
Rule 10 specifies the CS’s responsibilities, which are as follows:
- Give the company directors any instructions regarding their rights, obligations, and powers that they may want.
- Organize meetings, attend board, committee, and general meetings, and take minutes at each one.
- Obtain the government’s, the board’s, and other essential authorities’ permissions as required by the Act’s provisions.
- Represent clients in matters involving the fulfillment of Act-related requirements before a range of regulatory organizations and other authorities.
- helping the board of the company run the business affairs of the company.
- Giving the board guidance and helping it to comply with corporate governance standards would ensure effective corporate governance and best practices.
- Fulfill any additional obligations outlined by the Act or regulations.
Conclusion
If you are someone looking for a qualified company secretary for your business, then our legal advisors at Vakilsearch can be your best bet. Our team of will provide you with 100% assistance based on all your needs and make the entire procedure is very smooth and hassle free.
FAQ:
1. What is the role of company secretary in business?
A Company Secretary ensures a company's compliance with statutory and regulatory norms. They handle administrative functions, corporate governance, and act as a conduit between the board and stakeholders. Their expertise often extends to areas of corporate planning and financial strategy.
2. What are the benefits of company secretary?
A Company Secretary brings numerous benefits. They ensure the company remains compliant, reducing legal risks. They also offer valuable insights into corporate governance, aid in strategic planning, and can enhance the company's reputation by ensuring ethical business practices are followed.
3. Can a company secretary be an entrepreneur?
Absolutely. With their deep knowledge of business laws, regulations, and corporate governance, a Company Secretary is well-equipped to start a venture. Their skills can be invaluable in setting up and managing a new business, ensuring it adheres to all necessary legalities.
