The appointment of company secretary has a great impact on every stage of company formation. So a company should be more careful about the 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:
1. By the promoters: The first secretary of a company is appointed by the promoters at the pre-incorporation stage and such a name is mentioned in the Articles of Association. Such an 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 appoints 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 the 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 the incorporation of a company. Such a secretary may be appointed on a part-time or full-time contract.
Any of the above appointments requires a written agreement of service where the terms and conditions of service duration, nature, and scope of duty, salary, and allowances, termination method, etc. are described clearly.
Related Content of Secretarial Function:
- 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
- Liabilities of Company Secretary