Undoubtedly the company secretary plays a vital role in the company. He or she also enjoys some power and right. On this page, we will discuss the power and rights of company secretary.
Powers and Rights of Company Secretary
A company secretary is a high-level officer. He enjoys certain rights and power as per the contract made with the company, which are as follows:
1. Supervision and control: As the head of the office, a company secretary has the right to supervise, direct, and control all office activities of subordinate offices.
2. Singing authority: Being a principal officer, a company secretary can sign contracts, proceedings of the company meeting, files, and documents on behalf of the company.
3. Exercising power: He has the right to apply power as authorized by the board of directors.
4. Issuing testimonial: A company secretary can issue testimonials to employees on behalf of the company.
5. Claiming salary and damages: As per the contract, he has the right to claim his salary and other allowances. He can also take legal action against the company if there is any breach of contract.
6. Preferential creditor: During the winding up of a company, the company secretary can claim his legal dues as like as a preferential creditor.
7. Attending meeting: He has the right to be present in the meetings of the shareholders and board of directors.
Restrictions on the Powers and Rights of Company Secretary
A Company secretary enjoys certain rights and power but there are some restrictions to his rights and power, which are given below:
1. Distribution and transfer of shares: A company secretary can’t distribute or transfer any share if he is not authorized by the board of directors.
2. Company agent: A company secretary cannot attend any meeting as a company agent without any consent from the board of directors. He requires authority from the board of directors to sign any contract on behalf of the company.
3. Taking loan: A company secretary cannot take a loan in the name of the company. If he does so, the company will not be liable for such a loan.
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
- Legal Status or Position of Company Secretary
- Company Secretary Duties and Responsibilities
- Importance of Company Secretary
- Liabilities of Company Secretary