The Company Secretary's Duties & Liabilities

A few days ago, I received an inquiry from a fewcompany meetings are mainly referred to directors'
working girls who wanted to venture into someand shareholders' meetings. Operational meetings do
business. They wanted to find out about informationnot require a company secretary's attendance.
about setting up a private limited company or Sdn Bhd.2. Keep and maintain all the statutory books and
One very interesting question from them was "Whyrecords of the company, ie. Minutes book, register
do we need a Company Secretary?"book, share register etc.
From that moment on, I am pretty sure many people3. Ensure proper filing of all necessary returns with
out there are very curious about the same questionSSM such as annual return, forms etc.
and here, I would like to share with you, the duties and4. Issue notices of meetings to shareholders as
responsibilities.directed by the board of directors.
The Corporate Secretary5. Process share transfers documentations and
Every limited company must have a minimum of onerecordings.
Company Secretary, according to Section 139 of the6. Countersign essential company documents and
Companies Act, 1965. The its appointment is decidedcertifying documents for certain matters such as
by the directors of the company.banking matters etc.
To qualify as a Company Secretary, he or she must7. Ensure safe custody of company seal.
be either a member of a professional body approvedLiabilities of a Company Secretary
by the Ministry, or a licensed secretary granted by theGiven the fact that a company secretary is an officer
SSM. Further, the person must not be a bankrupt andof a company, same as the directors, he or she has
is not convicted of any offence under Section 130 (1)fiduciary duties to perform for the company. He or she
of the Companies Act.is requires to act honestly and in good faith.
Statutory duties of a Company SecretaryHe/she is personally liable to criminal charges is he or
His/her statutory duties as required by the Companiesshe commits wrongful acts, and can also be penalized
Act are generally as follows:-with a fine. Wrongful act is as simple as failure to lodge
1. Has to be present at all company meetings andthe annual return to SSM.
recording minutes of the meeting. In this context,