Duties of Company Secretary and Hiring Cost
A company secretary is an essential person in a company who
is responsible for the effective administration of a company and ensuring
effective implementation of the decisions made by the board of directors of the
company. A company secretary also known as corporate secretary has nothing to
do with secretarial work but it is a senior position in a private or public
company, and therefore in most cases, you will find a senior board member has
been appointed as the company secretary.
Duties of Company Secretary
Duties of Company Secretary
As a senior person in a company, the company secretary plays several roles which are critical to the smooth
running of the company. Some of the significant duties include.
Guide: A company secretary is responsible for guiding
the power of both the company director and the chairman. Should also advise
their power and roles they are supposed to play in the company.
Audit: The company secretary has to ensure that all
the laws stated in the memorandum of the company are adhered to. They should
also execute the audits to ensure the smooth operation of an organization.
Advisor to the other company executives: a company
secretary is someone who has a deep understanding of the law that may touch on
the company and also understand the law of the company. CS should, therefore,
advise other company executives in law issues. The company secretary has to
fulfill the following legal responsibilities.
Filling the annual returns of the company in accordance with
the company's laws.
Assist the directors and the chairperson ineffective
implementation of guidelines.
The company secretary should also regulate the flow of
dividends.
The connection between inter and intracompany:
- It is the duty of the company secretary to act as a link between the board of directors and investors who would like to invest in the company.
- Record keeping of legal work: the CS has to keep all the information regarding shares, members, directors, and investors as well.
- Planning of the company meetings: All the meetings that should be held should be arranged by the CS that includes the shareholders' meetings and the board of management meetings.
- Keeping of the company records: It is the duty of the CS to keep the company records even when not needed by the law, some of such records include the PAYE records, tax records, VAT records, and insurance details.
Cost of Hiring Company Secretary
Every company should have at least one company secretary who
should meet all the basic qualities to impact a positive effect on the company.
The cost of hiring a company secretary varies depending on
the country, state, type of the company, size of the company, number of company
secretaries, and experience of the individual company secretary.
Having that qualifications and experience are the major
determinants of the cost of a company secretary, the cost of hiring a CS, therefore, ranges
from $47,000 to $83,000 per year depending on the qualification and experience
of the CS.
Who Is Eligible to Be A Company Secretary?
It is a law in most states that you can't operate a company
for over six months without appointing a company secretary. However, not
everybody who can be appointed to be a company secretary and therefore the
following are some of the factors to consider before appointing one.
- A company secretary should be a citizen of where the company is situated. Foreigners are not much preferred.
- You should appoint a trustworthy person as a company secretary, someone who you can entrust your company.
- A company secretary for a public company should have more qualifications than a private company secretary. Some of the qualifications considered are the experience, legal knowledge, among others.
- Consider academic qualification when appointing a company secretary. You should appoint someone who has precise requirements and also poses excellent communication skills. The educational qualification should relate to the company business to be more relevant.
Conclusion
A company's performance and smooth running are basically
based on the ability ofthe company secretary, a competent and experienced company secretary,
therefore, transforms to better performance of the company.
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