Who Can Become A Company Secretary In Singapore?
The law in Singapore makes it very clear that every organization must have a company secretary to fulfil a number of legal roles and responsibilities mentioned under the Companies Act. A number of factors play an integral role when you are looking for a company secretary in Singapore. This post provides a good picture of the eligibility criteria for becoming a company secretary in Singapore.
Requirements of a Company Secretary
It is important to hire the best candidate as a company secretary to ensure the overall success and profitability of your company. Exploring the requirements of a company secretary is important because a company secretary has significant powers within an organization and plays an important role in the operational and management structure of the company.
Legal Requirements
Section 171 of the Singapore Companies Act deals with the legal requirements of the company secretary. It states that every company operating in Singapore must appoint a company secretary. This process of hiring should be completed within six months of company incorporation and registration.
It is the responsibility of the company’s board of directors to hire a company secretary. Companies that are operating with only one director or shareholder cannot appoint the same person in the position of the company secretary.
Such types of organizations can easily avoid this issue by hiring the professional services of an accounting firm in Singapore. Similarly, outsourcing accounting services also allows new companies to enjoy the benefits of professional and experienced services without spending too much time in the hiring process.
In terms of the eligibility criteria of a company secretary, it is necessary that the candidate is a legal resident of Singapore.
According to the law, a legal resident of Singapore is a person who is either a permanent resident or a Singapore citizen. Similarly, people with Employment Pass or S Pass can also qualify as legal residents of Singapore.
Public companies make it clear that the company secretary must have at least one relevant qualification to assume the important position of a company secretary.
These qualifications are also discussed under the Legal Professional Act. For instance, a public accountant who is registered under the Accountants Act or has been a member of a renowned institute like SAICSA can qualify for the job.
Responsibilities of a Company Secretary
Understanding the roles and responsibilities of a company secretary makes it easier to determine who can become a company secretary in Singapore. ACRA has dedicated a number of important duties to a company secretary.
One of the most important responsibilities of a company secretary in Singapore is to properly coordinate and conduct the company’s board meetings. These meetings are essential for the operations and management of a company. Moreover, they set the foundation for the future success of the business.
A company secretary must be capable of arranging board meetings and organizing the related documentation. It is the responsibility of a company secretary to hold an Annual General Meeting (AGM) and ensure compliance with the Companies Act. Moreover, whenever the company directors are hiring a company secretary, they must discuss the company’s constitution with the secretary and ensure he or she is capable of upholding the rules and regulations set by the organization.
The law makes it compulsory for the company secretaries to maintain company records like financial records, share registers, and statutory returns. Therefore, anyone who is becoming a company secretary should have complete knowledge of the statutory requirements to ensure maximum compliance.
In a Nutshell
In short, a company secretary is an essential part of any business. They are responsible for the smooth functioning of the business by ensuring maximum compliance with the legal rules and regulations.
Company directors should always make sure that the vital position of company secretary is filled by a professional and knowledgeable individual who will fulfil the designated responsibilities of a company secretary in Singapore. Companies also have the option to acquire an outsourced accounting service in Singapore to enjoy the benefits of a professional, efficient, and reliable service.
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