As a business owner who plans to have a company, having a secretary is necessary. A secretary helps to make your work easier and keep everything organized. In Singapore, a business owner must employ a secretary within six months of starting a company. Read on as we have discussed the responsibilities of a company secretary in this article.
Who is a Company Secretary?
A company secretary is an overseer who takes care of every affair in the company. We can also refer to them as compliance officers or corporate secretaries. They handle the company’s administration to ensure that they follow the regulatory requirements.
Under the CA 2006 section 270, it’s not legally necessary for a private company to have a secretary. However, the absence of a secretary can lead to the mismanagement of the company. So, a company secretary is essential for easy daily administration.
However, as a private company in Singapore, you might decide not to have a physical secretary. This is where the company secretarial service for Singapore companies comes in. They are licensed to act as ‘company secretary’ by guiding you on how to administrate the company.
Further, let’s look into some of the responsibilities of a company secretary below.
What Are the Responsibilities of a Company Secretary?
Maintains Statutory Registers in the Company
Statutory registers are records that a company keeps about its meetings and shareholders. Aside from the usual accounting records, statutory registers have to be kept safe. Most companies keep their statutory registers in a book, while others save them on a computer.
The company secretary must ensure that nobody has access to these registers. They must be at the company’s office address or a single alternative inspection location. However, Companies House must have a SAIL address first.
Further, the Companies Act of 2013 has stated that every company must give these records to the registrar of companies. They must tender it within a certain period for some amount of money.
Arranges Board Meetings
A successful board meeting relies heavily on the company secretary. They have to attend the activities before, during, or after the meeting.
Before the meeting, the secretary should meet the chairman on the order of the meeting. This helps them to decide what needs to be addressed or discussed. The secretary also ensures that the notice of the meeting reaches everyone.
During the meeting, the secretary must be punctual to record the names of those present. They also need to read the minutes of the previous meeting and get the chairman’s signature.
Then, after the minutes, they must prepare a draft of the minutes and seek approval from the chairman. Lastly, they must remind everyone who needs to take action on what they discussed in the meeting.
Files Annual Returns
Annual return is a compulsory statutory need for every business or company. A secretary ensures that the company files annual returns at the company’s house. The annual return includes charges for registration and appointment or termination of directors.
Under the Companies Act, every Singapore company must file annual returns with ACRA. This step ensures that the Accounting and Corporate Regulatory Authority’s register is updated. The company must also file its financial statements and its annual general meeting date.
If a company fails to file an annual return at ACRA or companies house, it may pay a fine or face other consequences.
Communicates with Shareholders
A shareholder is a person or organization who owns a share of a company’s property or stock. Since they partially own the company, they have the right to some information.
A secretary serves as the link between the shareholders and the company. They send out prospectus, request share applications, and allotment letters. Also, they send a notice to the shareholders when there’s a meeting.
The company secretary doesn’t forget to record the minutes of the meeting. They ensure that shareholders can check several records according to the company Act 1994. Further, they deal with their complaints and communicate the board’s decision.
Keeps Company Seal Safe
A company seal verifies that a company verifies and approves a document. It shows that necessary parties are engaged in the decision-making. We can also refer to it as the company’s official signature.
A company secretary ensures that the company seal is safe from unauthorized people. The only authorized person allowed to use the seal is the director or anyone the director approves. A secretary must keep it safe to avoid illegal approval of documents.
Though it’s not compulsory under the Companies Amendment Act of 2015, it’s faster. A company seal must include the business name, the founding year, state, and logo.
Supervises New Employees
A company secretary can also serve as a mentor to new employees. They help new employees find their way around the company and strengthen their abilities. For instance, a secretary might teach a new employee how to use the company’s computer, do assignments, and deal with clients.
Conclusion
The responsibilities of a company secretary are numerous, and it’s safe to call them a company’s overseer. They’re essential in a company to ensure smooth running. However, you can hire a company secretarial service to handle these affairs instead of a single person. Whichever way you choose, it helps your company grow and stay organized.
