Why Do You Need A Company Secretary For Your Business in Singapore?
Published on 30th September, 2022
The company secretary plays an important role in the business’s administration. The secretary handles different types of tasks and constantly keeps up with every update. If we talk about company law in Singapore, it mandates that the company secretary appoints every Company. Mainly the company secretary is very much responsible for their actions to ensure the Company complies with the most relevant legislation, including the regulation. The Secretary of the Company also keeps the Board members informed of their legal responsibilities towards the Company.
Do you know about the company law? Usually, the company law defines the legal framework within which the Secretary and the director should operate for a convenient and legal-free experience.
There is a considerable demand for secretarial services as the roles and responsibilities of the Company's Secretary are beyond expectations. The Secretary handles almost everything. It is equally essential that the company secretary is the Company's compliance officer. Mostly the entire Board and the chairman also rely on the Company's Secretary to take advice and update regarding the Company's function under the law. The Company's chairman relies on secretarial services to grab practical advice about their duties under the law and include corporate governance requirements. There are several responsibilities of the Company's Secretary.
What are the Duties of a Company's Secretary
Regardless of where they live, the corporate director is responsible for administering the Company. The Accounting & Corporate Regulatory Authority (ACRA), Singapore's national corporate regulator, states that a director "must make judgments objectively, act in the company's best interest, avoid conflicts of interest, and be honest and conscientious in carrying out his tasks."
And the company secretary is the officer primarily responsible for upholding the legal standards for reporting and administration despite the Singapore Companies Act's absence of specifying the position's role, responsibilities, and obligations. The company secretary works with the Board of directors to ensure that the firm complies with all legal obligations.
If you want to learn more about the Company's Secretary, then the company law in Singapore vests several crucial duties with the Secretary. The company secretary's primary responsibilities include administrative and statutory obligations. Let's know in detail:
- Mainly the responsibility of the best company secretary in Singapore is to maintain the statutory register. The Secretary of the Company must maintain and keep the statutory record well held and updated, like the register of the substantial shareholders, register of the charges, and others under the law.
- The Company's Secretary's role also includes keeping the company seal under their safe custody. They use the required documents as per the need of the Company.
- The Secretary's primary role is to send notices regarding the upcoming meeting to the members and shareholders of the Company. The Secretary of the Company must prepare the plan and organize the entire meeting for the welfare of the growth of the Company.
- Another responsibility of the company secretary is to prepare the accounts. Preparation of the Company's accounts is considered the vital role of the Secretary, which is done under the provisions of company law.
- The role and responsibilities of the Company's secretarial services also include the preparation of the minutes of the meeting. They are required to prepare the minutes of the meeting to form part of company records.
The legal and financial obligations
In addition to drafting and reporting all account statements following the Companies Act, the Secretary handles the organization's insurance contracts. They are also responsible for ensuring that the business follows the guidelines and regulations specified by the Memorandum of Association.
Now that you are more aware of what corporate secretaries do, it's time to go back to the original question about the importance of corporate secretaries for start-ups.
So how important are they?
Having a company secretary is necessary, particularly for start-ups, because the responsibilities that fall under their jurisdiction are fundamental to business operations. For instance, start-ups are still setting the groundwork for their companies in the marketplace. If there isn't someone expressly allocated to handle secretarial duties, a system could go crazy when anything is overlooked because "everyone else is too busy to do it."
Other duties of the Company's secretarial services
The best corporate secretarial services Singapore additionally complies with the following obligations set forth by company law:
- Performs crucial responsibilities for shareholders and debt holders. Among these responsibilities are the early payment of dividends, invitations to subscribe, management of the transfer procedure, and the issuance of share certificates.
- Ensures that the Company is managed transparently and responsibly.
- Assists the chairman in scheduling meetings for the Company and makes the required arrangements.
- It helps the directors carry out their statutory duties effectively.
- Serves as the Board's point of contact with the shareholders.
- Serves as the Company's officer in charge of all secretarial responsibilities.
- Monitors the Company's contact with its shareholders. The Secretary is also explicitly forbidden by the corporation from sharing any confidential information with any shareholder.
- It makes the statutory registries accessible to members, shareholders, and others unless banned by law.
- Ignore your Company's administrative responsibilities.
The terms of a Secretary's employment agreement with the Company will specify their specific duties, and the position may also come with optional duties. The duties of the Company Secretary also rely on their experience and professional background. For instance, a secretary with accounting knowledge may also be in charge of internal auditing and managing the Company's finances. If the Secretary has legal expertise, she will be able to assist the Company with contract drafting and other legal matters.
A company secretary in Singapore has the authority to attest to the existence of formal business transaction records. They might be required to sign legal documents with the corporation's director that display the common seal. Corporate resolutions are typically available in certified form from the company secretary, which is accepted as proof that the answer was adopted.