There are many liabilities of company secretary. Company Act 1994, Income Tax Act 1922, and the stamp act defines the liabilities of a company secretary. His liabilities can be divided into two groups, which are:
- Statutory Liabilities,
- Contractual Liabilities.
Liabilities of Company Secretary
A company secretary is legally bound to the following liabilities:
- Register all files and documents of the company.
- Arrange a statutory meeting and preparing the statutory report and submit it to the Registrar of the joint-stock company in due time.
- Arrange an annual general meeting in due time.
- Sending notice of the meeting to the participant.
- Writing minutes of various meetings and maintaining minute books.
- Supplying a relevant copy of minutes to the shareholders.
- Directors, shareholders, and debenture holder’s registrar maintaining.
- Submitting/financial statements of the Company to the Registrar of Joint Stock Company.
- Issuing share certificates, dividend warrant, and bonus share certificates to the shareholders.
- Deducting income tax from the employee salary and pay a dividend to the shareholders.
- Appointing company auditor and arranging an audit of books of account of the company.
- Never enter into any contract or distribute any share and debenture until the board of directors authorizes it. Also never take any loan in the name of the company.
- Submitting income tax returns and ensures the use of required company seal and stamp.
Such liabilities arise from his service contract made with the company. Which are given below:
- Abide by all terms and conditions of the service contract.
- Follow the order instructions and act as per the authorization of the board of directors.
- Maintain secrecy of the company affairs.
- Perform duties with due care and skills.
- Never act beyond his authority and not to make any secret profit through any illegal activity.
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
- Company Secretary Duties and Responsibilities
- Importance of Company Secretary