Question

Define Company Secretary. Write its powers and responsibilities.

Answer 1

According to the Companies Act , a Company Secretary means a person who is a member of the Institute of Companies Secretary India. A company secretary is an important organ of a company who performs various ministerial and administrative duties. It is mandatory for every company having a paid up share capital of 5 crore or more to appoint full time company secretary .

The powers of Company Secretary are:-

1. he has the power to supervise and control the secretarial department of the company.

2. he has the power to issue share certificate of the company.

3. being the principal officer he also has to sign official documents of the company.

4. he is empowered to perform all activities under various acts.

5. he has the right to be indemnified for any loss suffered by him in discharging his duties.

The responsibilities of Company Secretary are mentioned below :-

1. he is responsible to comply with internal regulations and legislation.

2. it is his duty to disclose all information for inclusion in register of directors and secretary.

3. it is his duty to exercise due care and diligence.

4. he is responsible for ensuring board decisions are properly communicated.

5. he is responsible for safe custody of common seal.