Define ‘Company Secretary’. Explain the position of a company secretary in the eyes of law and his actual position.
A Company Secretary is an officer of a company who ensures compliance with legal and regulatory requirements and facilitates effective communication between the company's management, board of directors, and shareholders. The position of a Company Secretary is usually mandatory for public companies, as stipulated by various corporate laws and regulations globally. Their role is critical in ensuring that the company operates within the boundaries of the law and adheres to corporate governance principles.
Position of a Company Secretary in the Eyes of the Law:
The position of a Company Secretary is legally defined and regulated by corporate laws and regulations in most jurisdictions. Some of the key legal aspects regarding the position of a Company Secretary include:
1. Statutory Requirement: In many jurisdictions, it is a statutory requirement for certain types of companies, particularly public companies, to appoint a Company Secretary. For example, in the United Kingdom, under the Companies Act 2006, every public company must have a Company Secretary. Failure to appoint one can lead to penalties and legal consequences.
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