Importance and Role of Company Secretary
In modem time, company secretary plays an important role in company management. From the inception of a company, he performs many important functions. The success of company management largely depends on the efficiency and ability of the company secretary. Though the important plans and policies of the company are formulated by the board, execution of those plans and policies depends on the initiative of the company secretary. It is says that, though the Directors are the Brain of a Company, the Secretary is Its Ear, Eyes and Hands. From the following discussion, we can realize the importance of company secretary in company management:
Advisor to the board: Company secretary acts as the advisor to the board of directors of the company. He provides necessary information and advice to the board for formulation of plans and policies.
Organizer: Company secretary plays the role of an organizer. As an organizer of the company, he takes necessary steps in registering share allotment statements, prepares share certificates, and distributes them to the shareholders. In addition, he prepares various kinds of reports like statutory report, directors’ report, annual report etc., and submits them to the board of directors.
Coordinator: Company secretary performs an important role as a coordinator. He coordinates functions performed by various departments for achieving the company’s goal. Moreover, he maintains liaison with various panics like board of directors, shareholders, employees and regulatory authorities.
Conductor of meetings: Various meetings of the company like, annual general meeting, extra ordinary general meeting, directors’ meeting etc. all are organized and conducted under the supervision of company secretary. He prepares the notices, agenda and minutes of meetings.
Custodian of books of accounts: Company secretary plays the role of custodian in the organization. He ensures that the company maintains necessary books of accounts as mentioned in the Companies Acts. Moreover, he keeps those books of accounts under his custody and makes necessary arrangements for inspection by various parties.
The above discussion reveals that company secretary plays multifarious roles in the management of a company. He acts as the company’s mouth speech. Therefore, he is regarded as the ears, eyes, and hands of the company.