What Does a Company Secretary Do?

What Does a Company Secretary Do?

A Company Secretarial role ensures that a company complies with legal and regulatory requirements, particularly around governance and reporting. While the title may evoke images of administrative tasks, the responsibilities of a company secretary go far beyond that. They play a vital role in corporate governance, risk management, and regulatory compliance, ensuring the smooth operation of a company. This article explores the role, responsibilities, and qualifications of a company secretary and provides insights into the career path for aspiring professionals.

What is a Company Secretary?

A company secretary is a senior professional responsible for ensuring that the business adheres to all legal and regulatory obligations. They act as the company’s compliance officer, managing the company secretarial file and ensuring that the board follows corporate governance best practices.

A company secretary in a limited company handles critical tasks such as filing annual returns, maintaining statutory records, and liaising with regulatory bodies. While the role is not mandatory for private companies in the UK, many businesses choose to appoint a company secretary to ensure they remain compliant with legal requirements.

What Does a Company Secretary Do?

The role involves a wide range of duties, including:

• Corporate Governance: Ensuring that the company complies with regulations and governance practices, such as managing board meetings and ensuring directors meet their fiduciary duties.
• Company Filing: Maintaining the company secretarial file and submitting annual returns, financial statements, and other required documents to Companies House.
• Risk Management: Advising the board on regulatory changes, legal obligations, and risks.
• Compliance: Handling legal and financial documentation, ensuring that the company complies with corporate laws and regulations.
• Board Support: Assisting the board of directors in meetings by preparing agendas, taking minutes, and advising on governance matters.

The corporate secretarial services provided by company secretaries ensure that businesses meet their legal obligations while maintaining good governance practices.

The Job of the Company Secretary is to Ensure Good Governance

One of the primary roles of a company secretary is to ensure that the company follows good governance principles. This includes maintaining transparency, ensuring accountability, and managing potential risks. Good governance is crucial for the long-term success of any company, as it enhances the company’s reputation and helps avoid legal pitfalls.

Company secretaries are also responsible for ensuring that the board of directors understands its duties and that any decisions made align with the company’s governance framework. This role is particularly vital in large companies, where compliance with various legal standards is essential to maintain operations.

Being a Company Secretary

Being a company secretary is a challenging yet rewarding role that requires strong organizational and communication skills. A company secretary must have a deep understanding of corporate law, governance, and financial regulations. They are often seen as the bridge between the board of directors and regulatory bodies, ensuring that the company remains compliant.

Company secretaries can work in various industries, from finance to manufacturing, providing company secretarial services that are essential for the smooth running of the company.

Where Do Company Secretaries Work?

Company secretaries work across a wide range of industries, including finance, law, real estate, and manufacturing. They can be found in both public and private companies, non-profit organizations, and government bodies. While some companies have in-house secretaries, others opt for external corporate secretarial services.

Many businesses, especially small to medium-sized enterprises, outsource these responsibilities to professional company secretarial services providers, ensuring compliance without the need for a full-time secretary.

What Salary Can a Company Secretary Expect?

The salary of a company secretary can vary widely depending on their level of experience, qualifications, and the size of the company they work for. In the UK, the Company Secretary’s salary for entry-level positions typically starts at around £30,000 to £40,000 per year. With experience, this can increase significantly, with senior company secretaries earning upwards of £100,000, especially in large corporations.

Salaries are also influenced by qualifications. Those with professional credentials, such as those gained through the Company Secretary graduate scheme or additional qualifications like Chartered Secretary status, often command higher salaries.

Could You Be a Company Secretary?

If you have strong organizational skills, an eye for detail, and an interest in corporate governance, a career as a company secretary could be ideal. The role requires a good understanding of corporate law, governance, and financial regulations, along with excellent communication skills to liaise with boards of directors and external stakeholders.

You don’t necessarily need to be a director to become a company secretary, but you should be well-versed in the responsibilities that come with the role. The Company Secretary UK qualifications often include a degree in business, law, or finance, alongside professional qualifications such as those from the Institute of Chartered Secretaries and Administrators (ICSA).

Does a Limited Company Need a Company Secretary?

In the UK, private limited companies are no longer required by law to appoint a company secretary, but public limited companies (PLCs) must have one. However, many private companies choose to appoint a company secretary voluntarily to handle their governance and compliance tasks.

Appointing a company secretary ensures that a limited company meets all legal requirements and governance standards. Outsourcing to company secretary services is also a common option for small businesses that want to stay compliant without hiring a full-time secretary.

Conclusion

A Company Secretarial role is essential for ensuring that businesses, especially limited companies, remain compliant with legal and regulatory obligations. From maintaining corporate governance to managing filings and compliance, company secretaries play a vital role in the smooth operation of businesses. Whether you’re considering becoming a company secretary or looking to hire corporate secretarial services, this role is key to safeguarding your company’s legal standing and long-term success.