7 Importance of Company Secretary

Though the directors are the Brain of a Company, the Secretary is its Ear, Eyes, and Hands, by this sentence we can clearly understand the importance of company secretary. Detail discuss of the importance of a company secretary is given below:

Importance of Company Secretary

A Company Secretary plays an important role in a company. He performs many functions and activities as per authorization from the board of directors. The secretary of a company is considered the Ear, Eyes, and Hands of a Company. The following is the justification for such a statement:

1. A company secretary acts as the advisor to the board of directors and provides the necessary information to formulate plans and policies.

2. A company secretary is an organizer as he registers share allotment, prepares and allocates share certificates, makes all arrangements to prepare various reports like a statutory report, director’s report, and annual report, etc.

3. A company secretary acts as an agent of a company and enters into a contract and makes representation on behalf of the company.

4. He is a coordinator and maintains correspondence with all stockholders of the company.

Importance of Company Secretary
Importance of Company Secretary

5. He is the conductor of various meetings like annual general meetings, extraordinary general meetings, director’s meetings, etc. He also prepares the notice, agenda, and minutes of meetings.

6. He performs the role of a custodian by maintaining all books of accounts required by the Company Act.

7. He is the chief administrative officer and carries out all administrative jobs of a company and reports to the board of directors.

The above activities of the company secretary give a clear understanding of his role. as the ears, eyes, and hands of the company.

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