Company Secretary India plays an important role in the company. CS commands over the smooth functioning of the administration process in a business environment of the company. As it is among the top brass in the company, the responsibility and role are very complicated and need channelized attempts to be displayed in a phased manner. After the Companies Act 2013, the role of Company Secretary in India has become very important.
Few roles and responsibilities of a Company Secretary:
CS works as an advisor by suggesting the role and power of the chairman and director of the company.
2. CS Audit:
A CS makes sure that the company is following the laws and guidelines explained in the memorandum in order to make the easy functioning of the organization, as per the rules mentioned in Section 204 of the Companies Act, 2013. It is not only a role, but the duty of the CS to execute such audits of prescribed and listed companies.
The CS firm knows the laws of the company very well and works as a legal advisor for the executives. During court of law matters, he advises on the company rights by taking the deep subject knowledge from the expert. Besides this, it is also important for a CS to follows these legal aspects:
- Furnishing the annual returns and forms according to the Companies Law.
- Helps chairman and directors in implementing some guidelines effectively.
- CS check the legal necessities required for the equipment concerned to share certificates.
- Regulates the flow of dividends in a phased manner according to the laws followed by the company.
4. Link Between Inter and Intra Company Works:
A Company Secretary plays a role of connectors between the investors, board of directors, and authorities who work in the direction of the company’s functioning and regulation.
5. Keep Record Of Legal Works:
The professional company secretary of India maintains the information regarding investors, shares, directors, and members in a record.
6. Scheduling Company Meetings:
He is also responsible for arranging the shareholders and company board meeting. The articles of the company will work on the final needs for shareholder and board of director meetings, but it is the legal company secretary who is responsible for following the notice necessities, deal with any sort of furnishing or revising the records.
7. Maintaining Company Records:
The company secretary firm oversees the matter of maintaining some records of a company even if it is not strictly needed by the law. The responsibility comprises:
- Pension and Insurance detail
- VAT registration
- PAYE information
- Tax Record and Accountancy
- Statutory compliance records
8. Command Over Corporate Governance:
A structure of good corporate governance is important for companies irrespective of the size, but it becomes difficult with a load of increasing stakeholders and company size.
In India, it is the Company Secretary advises the board of directors on corporate governance and director’s duties. This comprises managing the interest area of the shareholders, issues of conflict in interest, investor guidelines and handling with applicable codes.
9. Company Statutory Register:
It is the necessity of companies to maintain certain statutory registers which include:
- register of directors;
- register of charges;
- register of allotments;
- register of transfers;
- register of members;
- minutes of meetings and resolutions;
- register of secretaries;
- register of directors’ interests;
- register of debenture holders;
- service contracts of directors;
- directors’ indemnities;
- minutes of meetings and resolutions;
- Documents of purchase or redemption the shares out of the capital by a private company;
- Report to members of the result of investigation put by a company into interests in its own shares.
As explained after the Companies Act, 2013, the power of company secretary in India have broadened and more direct responsibilities have into effect. As mentioned in section 203, the companies do not need to hire full-time managerial personnel relying on the section of the company as mentioned by the center. This is required to be done in order to make sure the efficient governance and corporate regulation are working well. The important fact is to hire the CFO and CEO, it is necessary for the companies to appoint a Company Secretary professional, this describes the importance of the CS in the modern world.