It is not a hidden fact that a well-qualified company secretary is capable of promoting good corporate governance within an organization. However, everyone seldom revered the jobs and responsibilities performed by a secretary for a company. A commonly asked question when it comes to hiring company secretarial services Singapore is -“What does a corporate secretary do?”. Although the job of a company secretary is honorable and dynamic, there are a few myths or misconceptions do exist among business owners.
Role of Company Secretary in Company Incorporation Singapore
Before diving a little deeper into the myths of company secretary, let us discuss brief details of the role of secretarial services in company incorporation Singapore.
Technically, the process of company registration in Singapore could not be completed without hiring a qualified company secretary. As per the law, a newly incorporated company must appoint the secretary within six months from the date of incorporation. He/she is the person who is responsible for all fiduciary functions of an organization. To become a corporate secretary in Singapore, one must an ordinarily resident in the city-state. He/she could be a natural citizen or PR (Permanent Resident).
A few common myths which are yet to be eradicated from the business ecosystem of Singapore are provided in this blog excerpt.
Myth #1 Company Secretary is a Clerical Job: Despite the name, the job of a company secretary is not clerical in nature. Truth be told, it is a senior position in a private or public company. Likewise, the company secretary is one of the four key pillars of an organization. The other three being, the directors, shareholders, and auditors. A company secretary is accountable for practicing effective administration of a company. He/she is the one who ensures that the company complies with statutory obligations of the authorities. Also, a set of jobs and responsibilities have been performed under the wing of a secretary.
Myth #2 Outsourcing Secretarial Service is a Wastage of Money: Many small and medium business consider outsourcing secretarial services is a wastage of money. A few section of them even tends to think that the need of appointing a company secretary is unjustified. Reiterating, the role of a company secretary in a Singapore company is enormous. So, no one could afford to ignore its importance in business. As stated earlier, he/she is responsible for ensuring compliance with the Companies Act. When it comes to choosing between in-house staff or outsourcing to third-party company secretarial services, the latter one is beneficial for business in every sense. Instead of eating up money, outsourcing saves money and time for business (to be invested in a typical staff cost, infrastructure, hiring process, etc.)
Myth #3 Company Secretaries are Corporate Lawyers: A corporate secretary in Singapore is trained to handle legal matters of governing authorities. This has led many to think that company secretaries are corporate lawyers. It is true that the key jobs of a secretary revolve around the Companies Act, but that does not necessarily mean that he/she is also an attorney or lawyer. Nevertheless, ever since the growing demand for appointing a secretary who is also a lawyer is on the rise; many corporate secretaries are opting to become a lawyer as well. For companies, having a corporate secretary who is a lawyer can help mitigate many risks and issues.
Myth #4 General Counseling is not a Company Secretary’s Cup of Tea: The job of a company secretary does not confine to just the secretarial functions but also transcend to field like general counseling. Gone are the days when a secretary’s sole job is to ensure that the company is in good standing. The key functions included are such as arranging AGM, taking minutes, filing Annual Returns and so on. But, now it is common in companies to see secretaries serving in general counseling as well, besides the key responsibilities. Being able to wear the both hats at the same time, is considered to be a great asset.
In a nutshell, the myths about company secretarial services Singapore must be debunked so that people get to know exactly what a company secretary is all about. One must take the job of secretary seriously to prevent any undesired situation in the future. A plenty of myths may float around, but be sure to act logically before you going to believe anything you hear.