How Can a Company Secretary Protect Your Business From Financial Fraud?
Having a professional, experienced, and qualified company secretary is important to make sure your company is protected from various kinds of financial fraud.
Moreover, a company secretary fulfils various responsibilities in a company to ensure the smooth functioning of the business. Other than the professional services of a company secretary, you can also rely on accounting firms in Singapore to get the best payroll management and auditing services.
The purpose of this post is to discuss the benefits of a company secretary and how they can help you in preventing fraud.
1. Responsibilities
A company secretary is the foundation of any company in Singapore. It is the company secretary’s responsibility to make sure the best practices, quality control measures, and policies are implemented in a company to make the best decisions and ensure its success.
A company secretary ensures that the board of directors meets on a regular basis, maintains control over the company, and is clear about their roles and duties, as well as maintaining a risk management strategy.
2. Board Procedures
The company secretary will be in charge of ensuring that board processes are followed and that all applicable rules and regulations are obeyed. They must also guarantee that the firm files all relevant documents with the relevant authorities. A corporate secretary can have a wide range of responsibilities; however, the system of governance can greatly differ from one company to another.
3. Reduce Frauds
A reliable company secretary aids the organization in managing risk and reducing the likelihood of corruption. When directors and top management are not required to follow a written governance code, scandals and fraud are more likely to occur. To be able to observe how the firm functions, the board should meet on a regular basis, maintain control over the business, and supervise those in management.
Furthermore, a thorough plan made by the company secretary would clearly define each business officer’s responsibilities and urge them to keep these responsibilities in mind while making decisions.
4. Maintaining Records
A professional accounting firm in Singapore will ensure the implementation of a suitable structure in the company that will also guarantee that the company’s members, officials, and management are safe.
They will be safeguarded if the firm keeps its records in the company books and maintains its statutory registers. Maintaining these records also ensures that, if required, corporate executives may be held accountable for their acts through documentation.
It also implies that a shareholder cannot dispute the executives’ conduct needlessly. If required, they can be shown the business books, authorized resolutions, and board minutes to ensure that the officials are working within their authority.
5. Long-Term Plans
You might not have any initial plans to restructure the organization or sell it. However, a professional company secretary will make sure that such plans are made in advance so that if you have to sell the company quickly, you can easily do it.
Investors and purchasers will seek a well-organized business strategy when refinancing or selling the firm. A business that does not keep its accounts and registrations up to date is unlikely to attract the best purchasers. Furthermore, businesses are becoming more conscious of their public image and the need to act ethically.
These objectives can be met with the help of a company secretary and accounting firm in Singapore. Conducting regular board meetings and making decisions as a board will ensure the long-term success of the company. When a business follows excellent corporate governance and discloses everything, the public will trust the company and its brand, which improves the reputation of the company as well.
Final Takeaways
Hiring a company secretary is an important part of Singapore law. Once you have incorporated your company, you should hire a company secretary as soon as possible to ensure you are complying with the law and also getting the benefits of having a professional corporate secretary.
The above discussion makes it clear that a company secretary has an important place in the company when it comes to efficient management and preventing financial fraud in the business. A professional company secretary and chartered accountant will help you to increase the quality of the internal policies to ensure maximum compliance.
Moreover, once you hire a company secretary, you will not have to worry about maintaining the records yourself. Record maintenance is also a useful tool to prevent fraud or find the trail if a fraud has occurred. For more information, feel free to get in touch with us.
