Appointment of Company Secretary in Effective Ways

Appointment of company secretary has a great impact in every stage of company formation. So a company should be more careful about appointment of company secretary.

Appointment of Company Secretary

Each public limited company must have one secretary. A company secretary may be appointed in the following ways:

Appointment of Company Secretary

Appointment of Company Secretary

  1. By the promoters: The first secretary of a company is appointed by the promoters at pre-incorporation stage and such name is mentioned in the Articles of Association. Such appointment is given to assist all preliminary works of company incorporation.
  2. By the first board of directors: After the company has been registered, the first board of directors appoint the secretary at the first board meeting. Here the board of directors can continue the existing secretary appointed by promoters or can appoint a new company secretary.
  3. Within the board of directors: After incorporation, the first board of directors may appoint any of them as a company secretary having required qualification. Here a special resolution needs to be adopted.
  4. Professional secretary: The board of directors may appoint a professional secretary before or after incorporation of a company. Such secretary may be appointed on a part time or full time contract.

Any of the above appointment requires a written agreement of service where the terms and condition of service duration, nature and scope of duty, salary and allowances, termination method etc. are described clearly.

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