Statutory Liabilities of Company Secretary

Statutory Liabilities of Company Secretary

Statutory liabilities of Company Secretary

Though company secretary is entitled to enjoy some rights and powers as laid down in the Companies Act, his position is not free from liabilities. Companies Act and other laws related to company management provides the framework of certain liabilities for company secretary.

Statutory liabilities: Statutory liabilities of company secretary refer to those that the company secretary is legally bound to obey. The followings are his statutory liabilities:

  • Arranging the statutory meeting within the stipulated time;
  • Preparing the statutory report and submitting the same to the registrar of joint stock company;
  • Arranging the annual general meeting in due time;
  • Circulating the notices of the meeting to the participants;
  • Writing minutes of various meetings and maintaining the minute books;
  • Supplying the copy of minutes of general meeting to the shareholders;
  • Making arrangement for inspection of minutes books;
  • Arranging necessary steps for registering the resolutions taken in the meeting (if it is necessary);
  • Submitting the list of members and statement of share capital to the registrar;
  • Submitting authenticated Balance Sheet and Profit & Loss Account to the Registrar of Joint Stock Company;
  • Issuing share certificates, dividend warrants bonus share certificates etc. to the shareholders;
  • Deducting tact from the salary of the employees and from the dividends paid to the shareholders;
  • Maintaining the registers of the shareholders and debenture holders;
  • Maintaining the registers of the directors;
  • Preserving the common seal of the company;
  • Arranging necessary steps for appointing company auditor;
  • Arranging audit of company accounts;
  • Affixing the requisite stamp on various documents of the company;
  • Preparing annual income tax return and submitting the same to the concerned authority for their approval or reassessing.

Share This Post