How Has the Role of a Company Secretary Evolved Over Time?

The role of a company secretary has been around for a long time and is a key component of any business. Over the years, the role has evolved from being a passive participant in a company’s governance to a much more active and important position.

Today, a company secretary is essential to successfully running a business, helping ensure that everything runs smoothly and that all legal requirements are met. Moreover, more businesses are engaging corporate secretarial service providers to fulfil their company secretary needs.

In this article, we will explore the evolution of the role, its impact on businesses, and the importance of having a company secretary in place.

What is a company secretary?

A company secretary is a pivotal role within any organisation. They are responsible for ensuring that the company complies with all relevant laws and regulations, as well as providing support on legal documents and other corporate matters.

The company secretary is also the link between the board of directors and other stakeholders, ensuring that the interests of all parties are considered in decision-making. Having an experienced and knowledgeable company secretary on board is essential to ensure that the company operates efficiently, compliantly, and successfully.

What are the primary functions of a company secretary?

Company secretaries manage a variety of complex tasks. The following are some of the primary functions of a company secretary:

• Uphold the company’s interests at all times
• Ensure that best practices in corporate governance are followed
• Managing the company’s structure and share capital
• Keep shareholders and directors informed of changes in corporate regulations, if relevant
• Maintain and update the company’s registers and minutes books on a regular basis
• Making preparations for the annual general meeting (AGM)
• Facilitating the transition process and succession planning
• Ensure that company directors are informed of the Accounting and Corporate Regulatory Authority’s filing requirements (ACRA)

How has the role of a company secretary evolved?

Historically, a company secretary was an administrative figure. It now serves as a vital governance and advising role for many internal functions.

Here’s a closer look at some of the duties of a business secretary today:

1. Ease the digital transformation process

In this age of digital transformation, company secretaries can also play an important role in driving the shift to digital. A sound digital strategy that aligns with the organisation’s business objectives will help the company secretary keep up with the changing times.

The secretary can leverage tools such as automated compliance to ensure better governance and risk management. As such, it is crucial for companies to focus on implementing an effective digital strategy for their business with the help of their company secretary. This will enable them to make better strategic decisions and stay ahead of the competition.

2. Evaluate potential risks

The global COVID-19 pandemic highlighted the need for companies to be better prepared for unforeseen risks. It revealed that many corporations had unusable and unrealistic risk processes.

As a result, a company secretary has a vital role to play in helping board members become more aware and prepared for potential risks. They are responsible for providing expert advice to help boards see the key business risks in advance and develop strategies and plans to address them effectively. They can also help turn these risks into opportunities by providing guidance on specific strategies that can be adopted.

Overall, their expertise is essential in helping boards make informed decisions and assist the company in effectively managing risk and ensuring the growth of the business. Company secretaries have the skills to ensure that board members are proactive in addressing potential risks before they materialise and, ultimately, prevent them from causing significant damage to the business.

3. Be adept in digital tools

In the face of the pandemic, businesses have had to resort to digitising their board activities. Company secretaries have been shouldered with the responsibility of handling these digital conferences and committee procedures using virtual tools like Zoom. It is imperative for them to ensure that these meetings are accessible and engaging to shareholders.

Furthermore, company secretaries must also conduct Annual General Meetings (AGMs) in either virtual or hybrid formats, which calls for great expertise in digital technology. Therefore, company secretaries need to be adept at using various digital platforms and tools to carry out their duties successfully.

4. Enhance and uphold strict corporate governance principles

The company secretary’s job responsibilities have grown substantially in recent years, and now include the creation of systems to ensure good corporate governance. To do this, they must be experts in ESG principles and regulations for digitalisation and technology. This means that a company secretary must have an in-depth knowledge of frameworks and regulatory requirements and an understanding of the wider business environment.

Furthermore, they must also be able to apply their knowledge to benefit the organisation and the stakeholders. In order to be successful in their role, company secretaries must stay abreast of the latest developments in the industry and adapt to changing trends.

Conclusion

The role of the company secretary is pivotal and has been a cornerstone of business operations for many years. As the role has evolved, it has moved from being a passive participant in a company’s governance to an active and vital position. Today, many businesses rely on the services of a company secretary to help ensure that all legal requirements are met and to ensure the successful running of a business.

At Counto, we understand that having the right tools to manage your business is essential for success. Therefore, we strive to provide our clients with dependable corporate secretarial services and an AI-powered platform to help them stay on top of their business operations and expand their reach in the marketplace.

In addition to our corporate secretarial services, Counto also offers a comprehensive range of services, including bookkeeping, tax filing, and accounting services for SMEs in Singapore. Our solutions are designed to help you manage your finances with greater efficiency, saving you time and money.

Get in touch with us today to learn more about our solutions and how they can support your business. We want to be your partner in helping your company thrive and grow!