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By AZIZAM AZIZAN

DECODING THE ROLE AND SIGNIFICANT OF A COMPANY SERETARY

Every company aims to secure the services of skilled professionals who can effectively contribute to maximizing profitability. With this objective in view, the role of a Company Secretary is strategically positioned across various management tiers to uphold corporate governance and facilitate seamless administrative operations within the companyCharacterized by its multidisciplinary nature, the profession of a Company Secretary entails range of responsibilities that necessitate adherence to legal protocols and ethicaconsiderations. This article endeavors to furnish a comprehensive understanding of thpivotal attributes constituting the job role of a Company Secretary, along with thindispensable functions and duties crucial for ensuring the harmonious operation of company. 

According to section 235(1) of the Companies Act 2016, it is mandated that a company iobligated to maintain at least one company secretary who is shall be a natural personeighteen years of age and above and either a Malaysian citizen or a permanent resident oMalaysia. Additionally, this individual must have their primary residence situated in Malaysiathus qualifying as an ordinarily resident. While a company does possess the liberty tappoint multiple company secretaries, it remains essential for each of them to satisfy thesspecific prerequisites. Appointed secretary shall be has consented in writing to be appointeas a secretary, he is qualified under section 235(2) and he is nor disqualified under sectio238Company Secretary has Ostensible AuthoritThe company secretary holds what is known as ostensible authority granted by thcompanys directors to engage in contractual agreements on behalf of the company. Thiauthority covers routine tasks such as procuring office supplies without the necessity oobtaining explicit consent from the directors. In these instances, seeking directorial
permission is not a prerequisite for the company secretary. However, its important to notthat such authority doesnt extend to matters of a managerial nature.


Key considerations include:

1. Scope of Authority: When the company secretary operates within the boundaries of theiauthoritywhether implicit, explicit, or ostensiblethe company is legally bound by theiactions.

2. Liability for Breach: Should the company secretary undertake actions outside the scope otheir authority, they assume personal liability towards any third parties with whom theyventered into a contract. Moreover, they also become accountable to the company foexceeding their authorityThe distinction here is that the company secretarys authority is applicable to routine andaytoday matters, but not managerial decisions. Adherence to these principles ensures
proper and authorized representation of the company in contractual dealings

The Evolving Responsibilities of a Company Secretary
Traditionally, the role of a Company Secretary has been primarily focused on upholdinregulatory compliance and overseeing corporate recordkeeping. However, in an age whertechnology is intricately interwoven into the financial and operational fabric of everorganization, the Company Secretarys role has expanded into a comprehensiveallencompassing realm. As responsibilities continue to grow, this corporate professional haevolved into a valued advisor to the Board of Directors, playing a pivotal role in maintaininrobust corporate governance.

Categories of Duties
The responsibilities of a Company Secretary can be categorized into distinct sectionsencompassing the following aspects:
1. Statutory Duties
Within this realm lie the duties mandated by the Companies Act. Although some of thestasks are carried out solely by the Company Secretary, many are executed collaborativelbetween the directorial team and the Company Secretary. Such obligations encompass:

Affixing the signature on the annual return.
Ensuring meticulous adherence to the stipulations of the Companies Act.
Completing and signing applications for the registration of the companys businesname.
Drafting the statement of affairs.

2. Disclosure Duty
The Company Secretary bears the responsibility of disclosing specific information for itinclusion in the register of directors and secretaries interests.

3. Duty of Diligence
A paramount duty of the Company Secretary entails exercising the utmost skill, care, andiligence in the execution of their tasks. Any neglect on their part renders them accountablfor any ensuing losses.

4. Administrative Duties
The Company Secretary is entrusted with various administrative tasks, encompassing:
Communicating effectively with company shareholders.
Maintaining requisite statutory registers.
Formulating and issuing notices for board and general meetings.
Ensuring seamless dissemination and adherence to board decisions.
Safeguarding the company seal

In a landscape marked by technological advancement and heightened corporataccountability, the Company Secretarys duties have undergone a transformative shift.
Embracing a holistic approach, they now serve as a linchpin in sustaining effective corporatgovernance while navigating the intricate tapestry of legal, administrative, and strategidimensions.

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