The Role of a Company Secretary in ensuring Compliance With Indian Corporation Law
A Company Secretary (CS) is a senior employee of a corporation and is responsible for ensuring that the company meets all legal requirements, including those relating to the Companies Act and regulations issued by the Securities and Exchange Board of India. They also provide advice to the board of directors and management on corporate governance issues.
A CS can be found in all sorts of industries and is often employed by law firms, accounting firms, or as an independent consultant. They are a crucial link between the company and its shareholders, regulators, and other stakeholders.
In India, a Company Secretary is a professional who is certified by the Institute of Company Secretaries of India (ICSI). They are recognised as Key Managerial Personnel under the Companies Act, 2013, and have a legal degree from a reputable university.
The role of a Company Secretary has been enhanced in recent years due to heightened regulatory focus on corporate governance and compliances. As a result, they have become a critical component of a company’s board.
Increasingly, the role of a CS has moved from being the guardian of a company’s operational processes to the custodian of its compliances with legislative standards and best practice. This means they are required to be knowledgeable and trained in e-signing, digital HR tools and other technological solutions that can streamline daily operations and enhance process control.
There is a growing emphasis on improving corporate governance in Indian businesses, with regulators calling for increased transparency and better reporting of business activities. This calls for a holistic approach to governance, which can only be achieved through the support of an experienced and qualified Company Secretary.
To achieve this, a CS needs to have a thorough understanding of governance frameworks and the best practices for ensuring that the company is compliant with legislative standards. They must also be able to document and convey these governance related policies, practices, and procedures effectively.
They must be able to work as a team and coordinate their actions and communications with other members of the company’s management and the board of directors. This can be challenging and requires a lot of flexibility, especially in an evolving environment like India.
A CS must have good time management and be able to prioritize their workload, especially during busy periods. This is important to ensure that their work is completed on time and without any errors or delays.
The role of a CS has evolved in recent years and has expanded to meet the demands of a rapidly growing and complex corporate landscape. The new role of a CS must be flexible and willing to adapt to the ever changing regulatory landscape.
In a nutshell, the role of a Company Secretary is vital to the success of any business in today’s highly competitive and demanding market environment. In fact, the role of a CS is one of the most valuable assets that an Indian corporation can have.