What is the Role of Company Secretary? A Comprehensive Guide to Their Responsibilities
You may have heard of the role of a company secretary but what exactly does a company secretary do? In this guide, we'll explore the responsibilities of a company secretary and their importance in ensuring your business complies with legal requirements.
What is a Company Secretary?
A company secretary is a senior officer in a company who is responsible for ensuring that the company complies with all legal and regulatory requirements. In Malaysia, it is mandatory for every company to have a company secretary appointed within 30 days of its incorporation. The company secretary must be a natural person who is a member of a professional body recognized by the Minister of Domestic Trade and Consumer Affairs.
Responsibilities of a Company Secretary
The role of a company secretary is broad and varied. Here are some of their key responsibilities:
Ensuring Compliance: One of the primary responsibilities of a company secretary is to ensure that the company complies with all legal and regulatory requirements. This includes maintaining accurate records, preparing and filing reports, and ensuring that the company's activities are in compliance with relevant laws and regulations.
Maintaining Statutory Registers: The company secretary is responsible for maintaining the company's statutory registers, which include the register of members, register of directors, and register of charges.
Facilitating Meetings: The company secretary is responsible for organizing and facilitating meetings of the board of directors and the shareholders. They are responsible for preparing agendas, issuing notices, and recording minutes of the meetings.
Advising the Board of Directors: The company secretary is a key advisor to the board of directors, providing guidance on legal and regulatory matters and ensuring that the board is aware of its duties and responsibilities.
Handling Shareholder Communications: The company secretary is responsible for handling communication with the company's shareholders, including issuing notices of meetings, responding to shareholder queries, and ensuring that shareholders receive relevant information about the company.
Importance of a Company Secretary
The role of a company secretary is crucial in ensuring that a company operates legally and ethically. By ensuring compliance with legal and regulatory requirements, the company secretary helps to protect the company's reputation and minimize the risk of legal disputes. Additionally, the company secretary can provide valuable advice and guidance to the board of directors, helping to ensure that the company is run in a responsible and sustainable manner.
In conclusion, a company secretary plays a vital role in ensuring that a company operates in compliance with legal and regulatory requirements. By fulfilling their responsibilities, the company secretary helps to protect the company's reputation, minimize risk, and ensure that the company is run in a responsible and sustainable manner.