Although private companies are no longer required to designate an official secretary, these services must still be provided by public and private companies. Despite this, many people sometimes ignore this important area of company law and believe that this is just an administrative burden with minimal real effect.
However, the truth is completely opposite. The appointment of a secretary can be extremely beneficial for your business such as through profit tax, since it assumes a wide range of responsibilities for the organization. Of the many tasks he performs, some basic tasks include the following:
The secretary is responsible for maintaining mandatory records, such as the registration of participants, for the company. This document contains information about who owns the company. This is determined by the registration of the members of the House of Registry, and not by a certificate of shares or records or a contract. In most cases, the maintenance of poor records led to confusion about who owns the business and, ultimately, to disastrous consequences.
The professionals who provide secretarial services offer constant advice and advice to directors on key aspects of company law. This usually includes the need to declare dividends, make decisions and issue new shares. Without this professional advice, the actions taken by the directors may be invalid, illegal or possibly criminal in nature.
Effective corporate governance means ensuring that the organization functions properly and that the interests of shareholders are carefully protected. The services of a company secretary, if provided professionally, help ensure that the decisions made by the directors and their interaction with shareholders are legal.
- Posted in: Business