What You Need to Consider When Choosing a Company Secretary
Some business owners commit the mistake of doing all the tasks in the company on their own. This is not surprising because they want to personally oversee everything. By doing so, investors can ensure that they will make profits in no time after investing a certain amount of money.
While it is commendable for the business owners to be hands-on, they should remember to always delegate the roles for efficiency. They cannot be the chief executive officer and corporate secretary at the same time. You might just end up doing poorly on both roles and your company will suffer because of that.
Choosing a company secretary to do all secretarial works might be received with reluctance by some business owners. After all, it is a gamble to onboard someone new to your own company. But they should understand those company secretaries are there to facilitate growth and make work relationships harmonious in your company.
As a business owner, you should shift your focus on growing the company and let your company secretary do his or her job. In time, the business operations will run more smoothly.
Before tackling the tips on choosing a company secretary, let us discuss first the different hats worn by a company secretary.
What You Need to Know to Understand Company Secretary Roles
Company secretaries’ roles are encompassing the whole company, making their jobs multifaceted. They make sure to keep the records neatly and efficiently, serve as an executive assistant, and take on the role of communications officer, among others. We can categorize their duties in three categories:
Administrative
Company secretaries are the direct line of communication of the company to the regulatory bodies should they have concerns over the firm. At the same time, they are the one tasked with preparing the minutes during annual general meetings and board meetings. They should also keep company registers up-to-date and file regulatory filings to relevant government agencies when necessary.
Advisory
Being a company secretary, you are expected to have knowledge of the law and financial analysis, among others. This can help you provide meaningful advice to the company whenever the directors ask for your opinion on the matter. Company secretaries should also pay close attention to the board meeting discussion so they can provide additional input that can be valuable to the company.
Fiduciary
Company secretaries are in charge of informing the shareholders about the company’s financial standing. This is done by disseminating financial reports to them so they can also take part in forming decisions during the company’s annual general meeting. With this, it is necessary for the company secretaries to be knowledgeable on finances and accounting so they can explain what the numbers meant.
These are the general classifications of a company secretary. However, some companies are requiring company secretaries to have knowledge of technology too as this revolutionizes their roles as time progresses. It will not hurt to upskill; remember that learning new things can help you stay at the forefront of the industry.
Tips for Choosing a Company Secretary
There are many things to consider when choosing a company secretary. If you do not have an idea, here are some of the factors you should put in mind.
Make Sure You Get What You Pay for
In every business decision, the cost is always a primary consideration. So, you must be able to maximize the budget allotted for hiring a company secretary from a secretarial services firm.
When dealing with a corporate service provider, their services to be provided should be outlined clearly so you know if you are paying the right amount. Some providers are offering their services at low prices but then would ask for additional payments as you go along the way. You should avoid this kind of firm because they might dry out your funds.
Meanwhile, some company secretarial firms are pricing their services too high than the usual industry standard. Do not be deceived that the quality service is reflected by the exorbitant fees. Check clearly because they might be offering less service than other firms in exchange for higher amounts. And this puts you at the losing end.
Ensure the Credibility of the Corporate Service Provider
The secretarial services firm should be a legitimate agency with a good reputation. You should do a background check before considering talking to one. Lookup for their client portfolio and talk to their customers to consult with them.
You also need to check if they can handle startup firms as well, especially if you are one. They should be familiar with the common issues being faced by startup enterprises so these will be addressed quickly.
Overall, the corporate service provider should also be able to adjust to the needs of the company.
Pick Someone Who is Technology-savvy
As mentioned, new technologies are emerging, and they come to change the course of secretarial roles. Company secretaries should be informed of the regulations and legislation when it comes to handling technology in secretarial duties.
One of the technologies seen improving the execution of the company secretaries is the electronic database. You can store important documents and reports here and access them instantly. As a corporate secretary, it is your job to bring in an information technology expert to make sure the system is always operational and well-protected against potential cyberhackers.
Trusting Your Company Secretary
Once you hire your company secretary, you should be able to trust his or her abilities in doing tasks well. This is why it is important to form a good professional relationship with your company secretary. In this way, you can always check up on them without being too sceptical.
While you have trust in your company secretary, it is also imperative to see if he or she is performing well. After all, your company secretary’s actions will have a big impact on the business. Just do it professionally and respectfully.
When looking for corporate secretary services, you might need the help of the professionals. Do not hesitate to reach out to 3E Accounting. We are a top-notch team ready to serve you and your company today.
