Company Secretary Career
Penned by Nishtha Khanna, this is a basic insight into the career of a Company Secretary- understanding the roles and responsibilities and knowing some basic tips.
Planning your career as a company secretary? Let’s start by knowing what exactly a company secretary is-
The Company Secretary is an in-house legal expert who is also called a compliance officer of the Company. This means he is a person who is employed to ensure that a company does not contravene any statutes or regulations which apply to its activities. He is an expert in corporate laws, securities laws & capital market and corporate governance.
Before starting up as a CS remember that only a company secretary certification is not enough for you. One should be a graduate either with a B.com or with a LLB degree.
When you are a company secretary you can get either employment or start self practice. Your signature will have a great value.
There are a few things you should know:
As per section 203 of Companies Act 2013 every listed Company and every public company having paid up share capital of rupees Five crore or more shall have whole-time Company Secretary in employment. And as per section 203 of Companies Act 2013 above specified company also need to appoint whole-time-key managerial personnel and as per Section 2(51) of the Companies Act 2013 Company Secretary also covered under the definition of Key Managerial Personnel.
If a company contravenes the provision regarding the appointment of Key Managerial personnel(K.M.P.) under Section 203 than the company shall be punishable with the minimum fine of rupees One lakh which may extend up to rupees Five lakh and every director and K.M.P. of the company who is in default shall be punishable with fine which may extend to rupees fifty thousand and if contravention is in continuing in nature than with a further fine of rupees one thousands for everyday after the first during which the contravention continues (sub section 5 of Section 203).
The company secretaries are also in demand in governmental organizations beside the private companies. Few of the popular names are:
Airport Authority of India
Bharat Earth Movers Limited (BEML)
Neyveli Lignite Corporation Limited
Oil and Natural Gas Corporation Limited (ONGC)
State Infrastructure Development Corporation Limited
There are many Indian banks who appoint accompany secretary to handle their legal issues.
Universities and colleges too open vacancies for a company secretary. With the right combination of expertise as well as experience, one can get promoted to senior positions such as Managing Director, Chairman and Directors in firms of repute.
The company secretary plays a significant role and has the following responsibilities:
- Assistance to the Board of Directors:Company secretaries not only provide secretarial assistance to the board but also provide them with expert advice in many respects.• Company Registrar: They are an important component of a company’s managerial hierarchy working in the capacity of the company registrar.
• Legal Advisor: As a legal advisor, they have to provide assistance to the company in case of any legal matter. They also ensure that the company complies with the statutory and bureaucratic directives of company, security and corporate laws.
• Corporate Policymaker: Company secretaries play an important role in putting together both short term and long term corporate policies of the company. They also advise the company board when existing corporate policies are brought up for review from time-to-time.
• Chief Administrative Officer: In the capacity of the chief administrative officer, they have to monitor the general administrative activities of the company. They are responsible for the safekeeping of all legal and other confidential documents of the company.
• Principal Secretary: They have to manage all aspects of corporate meetings be it board meetings, annual general meetings, interaction with important clients and vendors, meetings with government and private delegations. They may also have to take up the responsibility to manage corporate events and manage clients.
• Corporate Planner: As additional responsibility, company secretaries also have to keep a discerning eye on the expansion opportunities of the company. Further, they have to take care of collaborations, joint-ventures, mergers, takeovers within the country and outside.
• Important Link: Company secretaries act as a vital link between the board of directors and external entities such as shareholders, regulatory authorities and government bodies. They have to prepare detailed reports regarding company policies and disseminate them amongst internal as well as external stakeholders. On the other hand, they have to present the views of shareholders, regulatory bodies and government agencies to the board.