QS Study

Dismissal of Company Secretary

A company secretary has a great role in every stage of company formation. But a company need to dismissal a secretary some time. We are going to describe that reasons for dismissal of company secretary. A company secretary can be dismissed or removed by the board of directors in the following circumstances:

On the ground of disqualification: A company secretary is an employee of the company. He is generally appointed for a certain period. Whenever, a person is appointed as company secretary, employer-employee relationship exists between him and the company. If the board of directors is not satisfied with the work of the secretary, they can terminate him subject to serving a written notice to the secretary as is mentioned in the contract of service.

On the charge with irregularities: A company secretary may be dismissed without notice if he is charged with willful disobedience, misconduct, moral turpitude, negligence of duties, permanent disabilities etc. A company secretary can be fired at any time without any prior written notice if he has been proved:

  • As a fraud,
  • To break the code of conduct,
  • To have moral erosion,
  • To neglect duties intentionally,
  • To have permanent inability,

On the ground of winding up of the company: At the time of winding up of the company, company secretary will be discharged as like as other employees of the company. Employee – Employer relationship exists between a company secretary and the company. If the board of directors is not satisfied with the performance of the company secretary, they can remove him giving a prior written notice.