Appointment of Company Secretary
Appointment of Company Secretary
A Company Secretary is one of the senior positions in any public or private sector organization, placed at the topmost level of the organization’s hierarchy. CS secretary so appointed is responsible for the efficient administration of the company, especially with respect to the compliance aspects, Keeping the Board Members informed of their legal responsibilities, representing the company for legal documents, ensuring that the company and its directors operate within the specified legal framework, Registering and communicating with shareholders, etc.
One of the most important members of management is the company secretary. They are highly influential within the organization and have the ability to determine whether the business will succeed or fail through their choices. Someone with this much authority should be someone the board can trust and who also demonstrates abilities to handle all the responsibilities satisfactorily. The board, after adhering to the right procedure, has the authority to appoint and dismiss a company secretary.
FAQ
Every company which has a paid-up share capital of Rs 10 Crore or more is mandatorily required to appoint the whole time Company Secretary.
A resolution of the Board detailing the terms and conditions of the appointment, including the salaries, must be used to appoint a company secretary.
A company secretary is not allowed to serve in more than one organisation at once, unless it is a subsidiary. If he is holding office in many companies at once on the day this Act goes into effect, he must decide which one he wants to keep holding the office in within six months of the act’s start date.
A Board Resolution could be used to appoint a Company Secretary. The Board members must approve the terms and conditions of the appointment before it is made, and the Company Secretary must grant a Witten Consent for the position.
Company Secretaries must not
Without the Board of Directors’ approval, sign or agree to a contract on the company’s behalf.
Borrow money under the company’s name.
Call meetings with outside parties.
Recognize a debt in relation to the lawsuit brought against the business.
Shares may not be registered or transferred without the Board of Directors’ approval.
