A Company Secretary is a professional and a member of the board who handles the financial and legal affairs of a Company. The course of Company Secretary is quite professional but stressful involving the clearing of three written examination levels- the Foundation, Executive and the Professional
Let us look at the role they play in a Company.
Role of a Company Secretary is –
- to report to the Board about compliance with the provisions of this Act , the rules made there , and other laws applicable to the company;
- to ensure that the company complies with the applicable secretarial standards;
- to discharge such other duties as may be prescribed
While handling these roles, they face many challenges too. Some of them being:
- Understanding the business
This is essential to be an effective company secretary. The company secretary needs to be able to provide valuable guidance at a moment’s notice, from anything relating from corporate governance to finance to operations. Access to and working with the management of the company is essential to be able to develop a strong understanding of the business.
- Understanding company specific reporting obligations
While all good company secretaries will have a thorough knowledge of the company’s reporting obligations under the Companies Act, 2013, they must be aware of company specific reporting requirements to other regulatory or industry bodies. Companies must comply with a multitude of reporting requirements. The company secretary must familiarise themselves with all aspects of a company’s obligations to ensure continuity of business.
- Knowing and understanding board members
Most Boards have a multitude of personalities that sometimes do not gel with each other. Some directors are appointed to the Board as nominees of shareholders or members, and are there in part to protect certain interests. It is important for the secretary to be aware of these in order to identify any potential conflicts.
- Maintaining simultaneous relationships between the board, management and shareholders
A misalignment of goals between any of these components can represent a significant challenge for the company. The company secretary is often the first point of contact for each of these stakeholder groups, so being a confident and effective communicator is essential.
- Keeping board meetings clear, concise and cohesive through well prepared board information
The company secretary has a large role to play in the efficiency and effectiveness of Board meetings. Directing the Board to important information, distributing Board packs with plenty of time for review and a logical, flowing agenda structure are critical.
- Recording minutes in a fashion that the board supports
Some Board members want brief and concise minutes that cover major decisions, while others want a full account of all discussions during the meeting. Finding that balance early in the engagement can be a challenge for the secretary, while keeping in mind that minutes are effectively prima facie evidence should any matter go before a court. Either way, the company secretary also needs to ensure that the minutes accurately reflect the content of the meeting, both in terms of matters that were considered and discussed by the board, and decisions that were made in respect of them.
- Timely and accurate reporting from Management
Forthcoming information from management in a timely manner is essential for company secretaries to succeed in their role. The secretary must foster strong relationships with management and proactively obtain information to ensure expectations are met.
Faced with such plethora of challenges, it is advisable for Company Secretaries to embrace technology & automation tools for better running of Secretarial Department, automation of processes and ensure compliance.One of such tools is offered at volody.com. They provide you with the service of Secretarial Auditing and have the software to ensure that 75{e2c1e7703bf7b6642b5af6e60324f3a1752447b5447bd7c54193dc70712531ff} cost of your Company’s Compliance is cut to provide you with Zero Non-Compliance. Please visit https://www.volody.com/aboutcs/ to avail the service.
volody a leading software providers to Listed Companies and Practicing professionals like Chartered Accountants, Company Secretaries and Lawyers. volody uses cloud based technology to provide best new age softwares for automation and compliance management.
