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 the importance of company secretary 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 as the Ear, Eyes, and Hands of a Company. The following is the justification of such a statement:
- A company secretary acts as the advisor to the board of directors and provides the necessary information to formulate plans and policies.
- 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.
- A company secretary acts as an agent of a company and enters into a contract and makes representation on behalf of the company.
- He is a coordinator and maintains correspondence with all stockholders of the company.
- 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.
- He performs the role of a custodian by maintaining all books of accounts required by the company Act.
- He is the chief administrative officer and carries 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.
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
- Liabilities of Company Secretary