Five Occasions You Need a Company Secretary in Singapore
When it comes to running a company in Singapore, you have to consider a number of factors in this process. One of the fundamental requirements for all companies in Singapore is to have a company secretary who is a resident of Singapore.
A company secretary performs several important roles and responsibilities as mandated by Singapore Law. The significance of this position can be judged from the fact that ACRA has made it compulsory for every company to appoint a company secretary within six months of incorporation.
In this article, you will learn about the top 5 reasons why you need a corporate secretary in Singapore.
1. Comply with Legal Regulations
As mentioned before, ACRA has made it compulsory for every company incorporated in Singapore to have a company secretary. The law also makes it clear that the person appointed should be a resident of Singapore, and he or she cannot be the sole director of the company.
If the company has more than one director, a local resident company director can also serve in this position. Hence, it is important to have a corporate secretary to comply with the law.
2. Responsibility
Singapore law is clear about the roles and responsibilities of a company secretary. ACRA’s official documentation also states that if a company fails to comply with legal rules and regulations, the company secretary is held liable for compliance failure.
In other words, a corporate secretary has the highest standard of responsibility towards the company directors and keeps the directors updated about any potential changes in the Companies Act. They must make sure that the corporation complies with the law and meets important deadlines.
3. Deal with Stakeholders
Dealing with stakeholders in a company can certainly be a challenging task for the company directors. In such situations, you will need help from a company secretary who is experienced in dealing with both the directors and shareholders.
It is the responsibility of the company secretary to serve as an advisor to the company directors and provide any practical support if required. Similarly, they must communicate with the shareholders regularly and make sure their interests are protected in the company.
The financial statements and important reports should be distributed on time so that the shareholders are able to fully participate in the Annual General Meeting and other business decisions.
4. Duties as Per the Law
According to Singapore law, specifically the Companies Act, there are several important duties and responsibilities of a company secretary. Some of them are:
- A corporate secretary has to make sure the company is in compliance with ACRA by meeting the deadlines of filing the annual return and maintaining important registers. These responsibilities also include managing the notice of share transfers, dealing with the resignation of auditors, and other important matters that affect a company.
- Organize board meetings and provide relevant material to company directors and shareholders.
- Arrange the Annual General Meeting while following the Companies Act and the rules and regulations of the company.
- Make sure that the board of directors complies with the Memorandum of Articles of Association.
- Supervise the duties associated with shareholders.
- Manage the duties of non-executive company directors.
It shows that there are many different roles and responsibilities of a company secretary, so it is important for a company in Singapore to hire a reliable and experienced corporate secretary.
Generally, accounting firms in Singapore do provide such essential services and help the companies in complying with the law by fulfilling these essential responsibilities.
5. Approve Company Resolutions
According to the law, the company secretary of a corporation in Singapore has the power to authenticate documents or formal working procedures of a company. In some situations, a company secretary is also required to approve official documents, along with a company director, using the same seal.
Moreover, the company secretary can issue certified copies of different company resolutions, along with one of the company directors, to confirm that a particular resolution has passed. Hence, a company secretary fulfils the important role of approving company resolutions. In other words, they have to act as the custodian of a Singapore company.
In a Nutshell
The above discussion shows that a company secretary fulfils a number of important legal requirements and provides professional services for the success of a company in Singapore. It is recommended that companies rely on professionals and accounting firms in Singapore to ensure they are getting the best services and complying with the law by hiring a professional corporate secretary.
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