A company secretary has a great duties and responsibilities so here we discuss about company secretary duties and responsibilities.
Company Secretary Duties and Responsibilities
The duties and responsibilities of company secretary vary, due to nature, size and scope of the company. The following headings can describe the duties and responsibilities:
- Statutory duties: The statutory duties are set by the company act and other related laws, which are:
- Comply with the rules of company Act 1994; stamp Act and Income Tax Act.
- Sign the Annual Report.
- Maintenance of statutory books or different registers of the company.
- Preparation, validation and filing of resolutions, agreements, document, notices and various returns with the company Registrar.
- Attending the meetings and record their proceedings.
- Keep the common seal in safe custody.
- Duties to the board of directors: Company secretary is the spokesperson of the board of director and performs the below duties:
- Make sure that all actions of the board of directors are in accordance with the company’s memorandum and articles of association.
- Deal with the correspondence as per instruction from the directors.
- Provide necessary advice and information to the board to formulate company policy.
- Arrange board meetings, issuing notice and preparing agenda of such meetings also recording the minutes and resolutions of the meeting.
- Draft the director’s report and presenting it in the annual general meeting in favor of the directors.
- Duties towards shareholders: Company secretary acts as a link between the company and the shareholders. He executes the following duties to the shareholders:
- Circulate prospectus, invite and receive share application, issue allotment letter’ and share certificates and arrange, distribution of dividend warrants to the shareholders.
- Sending notice and agenda to the shareholders for their respective meeting and make arrangement to hold the meeting.
- Record the proceedings of the meeting in the minute’s book.
- Allowing shareholders to inspect various books and registers as permissible under company Act 1994.
- Communicate the decisions of board of directors to the shareholders and deal with the query and complaints of the shareholders.
- Protect (3%) the interest of the shareholders.
- Duties towards the office and staff: Company secretary is a high profile administrative officer of the company and therefore he needs to:
- Supervise and coordinate the activity of various departments like share department, correspondence department, accounts department, filings & recording department etc.
- Act as a friend and guide to the staff and ensure equal opportunity for all.
- Handle with query and complaints of the staff.
- Duties to the public: Company secretary is the principal officer who acts on behalf of the company. Company secretary should ensure:
- Supply of necessary information ‘to any public body or member as and when required by the company Act or other relevant laws,
- Company is not involved in any anti-social affair.
- Others: Beside the above duties and responsibilities, Company secretary should be:
- Responsible and confident to the company.
- Maintaining secrecy of the company affairs and to act within authority.
- Ensuring the legal interest of the company.
Flow chart given above will give a idea about company secretary duties and responsibilities at a glance. click on the image for large view.
Related Content of Secretarial Function:
- Appointment of Company Secretary in Effective Ways
- Reasons for Dismissal of Company Secretary
- Company Secretary Definition
- Role of Company Secretary in Every Stage
- Types of Secretary with its Definition
- Company Secretary Qualification and Qualities
- Duties of Private Secretary
- Definition and Qualities or Features of a Private Secretary
- Powers and Rights of Company Secretary
- Legal Status or Position of Company Secretary
- Importance of Company Secretary
- Liabilities of Company Secretary