Businesses must be transparent and accountable to authorities, customers, workers, and investors. For this reason, reducing risk and fostering growth requires effective company governance. The company secretary is one crucial, frequently misunderstood position in every corporate governance system. If your company is not doing well, you may wonder whether you should hire or change corporate secretarial partners.
In this guide, we have covered the functions of a company secretary, how they have evolved recently, and other important information concerning company secretarial services.
Table of Contents
Who is a company secretary?
While most secretarial services involve taking phone calls and scheduling appointments, a company secretary has different organizational responsibilities. A company secretary Singapore is a competent person designated by a business to handle compliance and administrative tasks. They are also known as a corporate secretary. As it turns out, a corporate secretary performs a wide range of essential functions that keep a business safe and enable it to meet its strategic objectives.
The Accounting & Corporate Regulatory Authority (ACRA) stipulates that the appointment of a corporate secretary is a prerequisite for completing a company’s incorporation process in Singapore. All Singaporean firms must designate a secretary within six months of incorporation.
The roles
A company’s corporate secretary ensures the company adheres to legal requirements. They will frequently intervene to mediate an internal issue between stakeholders and directors due to their in-depth understanding of the company’s internal governance.
A corporate secretary is responsible for more than just filing paperwork and adhering to rules stipulated by the ACRA or Accounting and Corporate Regulatory Authority, the primary regulatory authority. A competent one will guarantee optimal corporate governance practices, maintain constant communication with directors and shareholders regarding business affairs, and ensure the company’s interests are always safeguarded.
It entails, among other things, monitoring the issuance of share capital, overseeing the company’s statutory records, and guaranteeing adherence to the company’s constitution.
Below is a summarized version of these roles:
- Maintaining compliance in legal affairs
- Assisting directors in carrying out their legal responsibilities and staying compliant
- Board meetings
- Yearly general meetings
- Preserving the legally required registers and records
- Having appropriate communication with shareholders
- Changing or filing for a company closure.
What makes a good company secretary?
When hiring a company secretary, you should perform your due diligence as a company owner. There are prerequisites to becoming a company secretary in Singapore. The person needs to be a local resident, which encompasses being a Singaporean citizen, permanent resident, dependent, or holder of an Employment Permit. They ought to be well-versed in the Singapore Companies Act, as well.
The Accounting and Corporate Regulatory Authority (ACRA) states that the company secretary needs to meet one of the following requirements:
- The appointment as a public company secretary must be preceded by at least three years of secretarial experience gained within the previous five years
- Registration as a public accountant per the Accountants Act, Cap. 2
- Recognition as a qualified individual under the Legal Profession Act, Cap. 161
- Membership in various bodies, including the Association of International Accountants (Singapore Branch), the Institute of Certified Public Accountants of Singapore, the Institute of Company Accountants, Singapore, and the Singapore Association of Chartered Secretaries and Administrators.
These requirements guarantee that the company secretary is competent and can carry out their responsibilities efficiently. Relevant experience is just as crucial as a recognized professional certificate, though. A company secretary should be well-versed in compliance, company law, and corporate governance.
Outsourcing secretarial services for businesses
Employing knowledgeable professionals is expensive, and small businesses might not have the funds to hire a highly qualified accountant or company secretary with years of expertise. A company can access a talent pool of skills, expertise, and experience at a reasonable cost by outsourcing company secretarial services to Boardroom professionals.
Besides, company secretarial responsibilities can often become administratively onerous or overwhelming for a business, especially during fast growth and cross-border expansion. A corporation may engage an outside specialist to serve as company secretary in one or more jurisdictions.
It’s getting increasingly difficult for companies with subsidiaries across several nations to stay on top of legal and regulatory requirements. A reputable secretarial services supplier implements risk controls and strong governance practices within the worldwide firm. Additionally, the supplier needs to maintain a regular reporting convention and be updated on any changes to the regulations in each jurisdiction. These services defend a company’s brand and lower risk, which gives it instant value.
By partnering with a reputable provider of company secretarial services, businesses, their general counsel, or their company secretariat can obtain specialized compliance knowledge from experts who have developed best practices over a long period and are continuously tracking changes in laws and regulations.
Red flags to watch out for an untrustworthy company secretary
You might be in a difficult situation if your company secretary performs poorly. Keep an eye out for the following signs of poor company secretary services:
- Restricted knowledge and experience
- Inadequate response and communication
- Ignorance of essential dates for compliance submissions
- Exorbitant costs and unstated expenses
- Insufficient or erroneous guidance regarding business affairs.
Your company may suffer severe repercussions if its corporate secretary is not qualified. You might also inadvertently break the law and overlook crucial deadlines. Imagine failing to comply with regulatory standards, losing out on government grant chances, and damaging your company’s brand to the point where it could be financially detrimental! This could impede the expansion of your company. Therefore, you must work with a capable and proactive company secretary Singapore to help your company avoid these possible risks.
Final thoughts
The position of a company secretary is crucial to upholding the integrity and transparency of any business incorporated in Singapore because they are in charge of ensuring the company complies with all legal and regulatory standards. Your firm can benefit from having a corporate secretary without having to pay for the whole expense of hiring one by outsourcing company secretarial needs. This ultimately saves time and provides absolute peace of mind.