Company Secretary Role As a Business Benefactor
Mridula Sharma24 Apr, 2024
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Company Secretary Role: The role of a company secretary (CS) is incredibly important when it comes to managing and organizing a business effectively. They act as legal representatives for the company and are responsible for tasks such as setting up the business, managing financial reports, and staying up-to-date on laws and regulations. Additionally, they play a critical role in the company's board of directors by handling matters related to corporate governance, management strategies, and compliance with laws regarding capital markets and securities.
Overall, a company secretary acts as the in-house legal advisor and ensures the organization follows all necessary regulations.Who Is a Company Secretary?
A Company Secretary, certified by the Institute of Company Secretaries of India (ICSI), carries out specific duties under the Companies Act's guidelines. This act assigns a special status to each company secretary, enabling them to serve as Key Managerial Personnel (KMP) in:- Private companies with paid-up capital of at least Rs. 5 crore.
- Public corporations with paid-up capital ranging from Rs. 5 to Rs. 10 crore.
Company Secretary Role As a Business Benefactor
The role of a company secretary is crucial, and it involves various responsibilities that need careful attention. Their main job is to ensure that all the company's activities follow the law and ethical standards. Failing to do so can result in termination or legal consequences. Here's what a company secretary does according to different laws:Companies Act Responsibilities:
They handle tasks like starting the company, managing paperwork for registration, handling share capital changes, issuing share certificates, maintaining shareholder records, and ensuring legal compliance by filing annual returns and declarations.Income Tax Act Responsibilities
They are responsible for submitting tax returns accurately, managing Tax Deducted at Source (TDS) filings, ensuring proper TDS deductions from employee salaries, maintaining updated TDS reports, and timely submission of TDS to the government.Other Acts Responsibilities:
They deal with various legal matters such as obtaining government approvals, adhering to industrial dispute regulations, following acts like FEMA, State Insurance, Depositories Act, and Foreign Exchange Management Act. They also ensure compliance with labor laws, competition laws, environmental regulations, etc. Additionally, they provide advice to authorities and the Board of Directors on risk management, corporate social responsibility, brand management, intellectual property management, stakeholder communication, and interactions with government bodies.| Also Check: | |
| Career After CS | BCom with CS |
Responsibilities of CS as a Business Benefactor
In business, a Company Secretary (CS) plays various crucial roles that benefit the company. Let's break it down:Business Facilitator: Under the Companies Act, a CS has specific powers. They can facilitate company promotion, handle audits, sign annual returns, oversee business transformations and takeovers, ensure transparent reporting and voting procedures, help revive struggling companies, and even serve as a technical member in legal matters.
Auditor: The Companies Act empowers a CS to attach a Secretarial Audit Report (form MR-3) to ensure the company follows general laws and regulations. This report also helps detect and report any instances of fraud to maintain corporate integrity and legal compliance.
Advisor: CS acts as a trusted advisor in various situations. They assist in share issuance, draft important documents like sale letters and proposals, handle private placements and share buybacks, manage fund-raising from international markets, handle loan documentation, provide guidance on tax planning, draft legal documents, advise on intellectual property matters, and shape merger, amalgamation, and joint venture strategies.
Duties of a Company Secretary
Rule 10 outlines the duties of the Company Secretary (CS), which include:- Advising company directors on their rights, duties, and powers.
- Organizing and attending various meetings, including board and committee meetings, and recording minutes.
- Obtaining necessary permissions from government and other authorities as required by the law.
- Representing clients in dealings related to legal requirements of the Act.
- Assisting the company's board in managing its business affairs.
- Providing guidance to ensure compliance with corporate governance standards.
- Fulfilling any other duties specified by the Act or regulations.
Company Secretary Role As a Business Benefactor FAQs
What is the significance of a Company Secretary (CS) in a business?
What are the key responsibilities of a CS under the Companies Act?
How does a CS contribute to compliance with the Income Tax Act?
What legal matters does a CS handle apart from the Companies Act?
What duties are outlined for a CS according to Rule 10?
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