When an employee joins a company he must hold a position like that a company secretary holds a position and now a detailed discussion about the legal status or position of company secretary is given below:
Legal Status or Position of Company Secretary
Our company Act 1994 does not define the legal status or position of the company secretary. However various decisions of the court and role-play of the company secretary provide the below matters as the legal status of the company secretary:
1. Secretary is an officer
According to section 2 (ii) of the Company Act 1994, a Company secretary is an officer of the company. He supervises all ministerial and administrative activities. He performs every correspondence on behalf of a company. So, he is a responsible officer of the company.
2. Secretary is a servant
A company secretary performs all duties as per the authority given by the board. He can exercise such power only which is delegated to him. Therefore he is a servant of the company.
3. Secretary is an advisor
The company secretary gives important advice to the board of directors and supplies relevant information or data required to make a policy of the company. Also, he advises on time-bound changes to cope with current socio-economic challenges.
4. Secretary is co-ordination
He coordinates the activities of various departments and units and keeps liaisons with the directors, staff, and other stockholders of the company.
5. Secretary is an administrator
A company secretary is considered the chief administrative officer, of the company. He regularly makes representation and enters into” contracts on behalf of the company. He is solely responsible to the board of directors for the smooth running of the office work.
6. Secretary is an agent
A company secretary is also regarded as an agent of the company as he signs a contract on behalf of the company.
In light of the above discussion, it is clear that a company secretary assumes a wide range of legal positions.
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
- Company Secretary Duties and Responsibilities
- Importance of Company Secretary
- Liabilities of Company Secretary