Question

A company secretary is the mouth piece of the Board of Directors.

• A. True
• B. False

Answer 1

The correct option is A True

(i) A company secretary needs sound general education.

(ii) He must also have knowledge of correspondence, office organisation, book-keeping and accountancy.

(iii) He must also have knowledge of secretarial work relating to the company meetings.

(iv) He must have legal back-ground including the knowledge of Indian Companies Act and other laws like Income Tax Act and Factories Act.

(v) A company secretary is normally appointed by the Board of Directors.

(vi) He executes the decisions of the Board and carries out the instructions and orders of the board.

(vii) He acts as a confidential clerk of the Board.

(viii) He has to help the directors in forming policies of the company and preparing progress report and other reports.

(ix) A company secretary acts as a line of communication between the Board and the staff.

(x) He acts as the mouth piece of the Board, as the Directors act only through the secretary

(xi) Even grievances of the staff are communicated to the Directors through him.

(xii) Hence, a company secretary is the mouth piece of the Board of Directors.