Every business functions around a core idea. However, there are many supporting functions needed to keep it afloat. Let us say a company manufactures software solutions for other companies. Developing excellent software solutions is the core responsibility of the company. Without developing effective software solutions, the company might not generate any profit. However, developing software is not the only thing within the organisation.
Other organisational processes include compliance checks, customer service, meetings, liaising with shareholders, and more. Many such internal functions are essential for a company’s survival. For example, a company not holding compulsory meetings between stakeholders and directors might invite legal troubles. It is where corporate secretarial services come in handy. Read on to understand the duties of a corporate secretary.
Why is there a need for a corporate secretary?
One might think, why is there a need for secretarial services? A company might pass secretarial responsibilities to in-house employees. However, in-house employees will not have time to fulfil core responsibilities. Fulfilling secretarial obligations is not a piece of cake which anyone could do. Corporate secretaries are highly-skilled individuals who know the compliance norms and help the company move in the right direction. Secretaries are responsible for handling various functions which might be complex for others. A company cannot ignore compliance norms and other administrative tasks for long.
A large or global organisation might even need numerous corporate secretaries to keep moving in the right direction. Think of a corporate secretory as a gatekeeper that protects the company from external hindrances. A corporate secretary will ensure the company follows the laws established by governing authorities. Now that we know secretarial services cannot be ignored let us understand the responsibilities of a corporate secretary.
Understanding the administrative duties of a corporate secretary
From clerical support to researching, a corporate secretary has several administrative duties. Some of the prominent administrative responsibilities of a corporate secretary are as follows:
- A corporate secretary plays a crucial role in drafting and setting corporate meetings. A secretary will set the time and place for a board or directors’ meeting. A secretary will also hand out invitations to the people supposed to attend a meeting.
- Drafting the compulsory board meetings is not the end of the road. A corporate secretary records the points/issues discussed in a board or director meeting. The decisions made in the board meeting are also recorded/documented by a corporate secretary.
- Corporate secretaries make the business transparent to external governing bodies. While making the company records transparent, corporate secretaries ensure that trade secrets do not get out.
- In every province or state, there are some compliance rules for businesses. Provisional rules and compliance norms require companies to maintain several documents. Corporate secretaries maintain the required documents with complete accuracy.
- A corporate secretary will maintain proper communication with stakeholders/shareholders. From holding annual shareholder meetings to handling internal communications, corporate secretaries are responsible for several things. A corporate secretary will assure the stakeholder that the business is going in the right direction.
Understanding the managerial duties of a corporate secretary
The managerial responsibilities of a corporate secretary are as follows:
- A corporate secretary ensures that all the decisions taken in board meetings are implemented immediately.
- A corporate secretary ensures that the standards set by the company are followed in every situation.
- A corporate secretary can sometimes act as a personal advisor to board members and stakeholders. In addition, a secretary ensures that each board member understands their role in the company.
- A corporation has to face regulatory boards and compliance agencies. Before the regulatory authorities find a mishap, the secretary must ensure everything is in order.
- A corporate secretary plays a crucial role in crafting official documents like the annual report, company prospectus, and company circular.
How to get the best corporate secretaries in 2022?
Now that you understand the responsibilities of a corporate secretary, you must have realised how important they are for ensuring business continuity. It might be challenging for a company to hire or train expert corporate secretaries. The best practice is outsourcing corporate secretarial responsibilities to a reliable third party. A CA firm can help you with effective corporate secretarial services. Look for expert corporate secretaries to boost business continuity!