Why is a Company Secretary Important in Singapore?
Hiring a company secretary in Singapore is an essential part of the company incorporation in Singapore as per Company Law.
However, it is common for business owners, especially new ones, to underestimate the significance of hiring a company secretary because they don’t fully understand the roles and responsibilities of a company secretary.
The company secretary is responsible for a wide range of business functions to ensure the business complies with the relevant rules and regulations and operates with maximum efficiency and productivity.
Hiring a company secretary as soon as possible is important to ensure maximum efficiency and productivity in your business. Following are some of the many reasons why hiring a company secretary is important:
Company Secretary has Various Responsibilities
The role of a company secretary is much more than just an assistant. Instead, the company secretary is responsible for a wide range of functions.
Apart from that, their responsibilities include disseminating financial information, communicating with shareholders, and preserving shareholders’ interests, among other things
While some business owners may be inclined to reject the function of a company secretary as unnecessary or too costly, employing a company secretary is not only necessary but is also a legal obligation under the Singapore Companies Act.
Within six months after establishment, each new business in Singapore must engage a corporate secretary. If the existing secretary retires or steps down, a new secretary must be appointed to take their place.
This may be done by appointment or with the assistance of a Singapore corporate secretarial service provider.
Unique Skills of a Company Secretary
While there are no specific requirements for employing a corporate secretary in Singapore, the position is not for everyone.
Given their wide range of duties, the corporate secretary must have a thorough understanding of Singaporean company regulations as well as business sense.
Hiring a lawyer is suggested but not needed since they will be responsible for all concerns pertaining to corporate compliance.
While employing a company secretary is required for incorporating a firm in Singapore, their duty is much more than just a name on the certificate of formation.
Aside from legal compliance and paperwork, the company secretary is in charge of submitting yearly reports with ACRA, scheduling and upholding protocol during board meetings, keeping the statutory registers, retaining custody of the company stamp, taking meeting minutes, and more.
Generally, companies choose to rely on audit firms in Singapore to ensure they get the professional and reliable services of a company secretary without spending too much time on hiring the right person.
Powers of a Company Secretary
As stated earlier, business owners tend to dismiss the importance of a company secretary and expect them to play a more passive role in the company.
However, as an authority on legal compliance and the administrator of various business activities, the company secretary should be an active part of the company.
Their position is one of power and should be used to build confidence and trust, as well as disseminate important and relevant information when needed.
A company secretary in Singapore has the authority to authenticate papers and formal processes of the business. He or she may be obliged to sign formal papers under the common seal with a corporate director.
A company secretary, along with any one of the directors, may usually provide certified copies of company resolutions, which are regarded as evidence of the resolution’s passage.
The company secretary has various responsibilities to the company, directors, and shareholders.
The company secretary must guarantee that all applicable legislative responsibilities are completed, that the company’s economic interests are always safeguarded, that sound corporate governance is followed, and that the company’s registered office location is visited on a regular basis.
The company secretary acts as an adviser to the board of directors and provides any necessary practical assistance, sharing timely information with all directors so that they may fully participate in board meetings.
The company secretary maintains frequent communication with the company directors and guarantees that their interests are safeguarded, promptly distributing financial information to prepare shareholders to vote at the firm’s Annual General Meeting.
In Closing: Hiring a Company Secretary
A conventional recruiting method may be used to hire a corporate secretary on your own. Alternatively, company owners in Singapore may rely on the knowledge of professional and certified audit firms in Singapore to fulfill this important procedure.
Companies can also choose to outsource accounting services in Singapore so that professional individuals are handling the critical business functions and ensuring maximum productivity and efficiency.
It will ultimately help the organizations in building a successful and profitable business.