Introduction about CS (Company Secretary)

The Company Secretaries Act of 1980 established the Institute of Company Secretaries of India (ICSI) to promote and govern the profession of Company Secretaries in India. This occupation dates back to 1960 when the Company Law Board launched a course in Company Secretaryship leading to a Government Diploma in Company Secretaryship. Section 25 of the Companies Act of 1956 led to the establishment of The Institute of Company Secretaries of India in 1969, as a result of the exponential increase in the number of company secretaries. The Company Secretaries Act of 1980 has made the Institute of Company Secretaries of India a statutory entity.

Every successful man has a lady supporting him. This proverb might be slightly modified to fit our needs: "Behind every successful corporation lies a determined company secretary."

A company secretary is a person who communicates with the public and is thus also known as the firm's "spokesman." So let's begin on a journey to reveal the occurrences and formation of a company secretary.

A Company Secretary is a person who assures compliance with all regulations pertaining to the operation of a company. To formalize commercial transactions, therefore, an understanding of corporate laws and associated regulations is required. In addition to being accountable to the business's shareholders and board, the company secretary interacts with the outside world on behalf of the organization. Consequently, he or she is the "face of the organization."

The company secretary's responsibilities begin as soon as the notion of forming a company is established. Although the concept of a Company Secretary (CS) may vary from company to company, the knowledge and training acquired by company secretaries enable them to perform a variety of functions in the Finance, Accounts, Legal Administration, and Personnel departments, in addition to their own secretarial duties and responsibilities. Various statutes regard the company secretary as one of the firm's key executives. Thus, company secretaries have a key and varied function in businesses. Companies with a paid-up share capital of Rs. 50 lakhs or more are obliged by law to employ a full-time CS.

The Company Secretary profession is not only respectable but also financially profitable. The position of Company Secretary is regarded as a prestigious one in the hierarchy, and it is one of the most significant positions an individual may have. This is due to the fact that in this role, one functions as a liaison between the company's Board of Directors, government, shareholders, and regulatory bodies. He or she advises the Chairman and the Board of Directors on how to maximize their legal obligations.

A company secretary is a high-ranking employee whose role is to guarantee that the firm complies with all government regulations; he or she also advises the directors on the company's policies and activities. A government statute mandates that all major corporations have a company secretary. As a result of the current economic upswing, a large number of businesses have expanded significantly and new businesses have arisen. Consequently, the need for and scope of business secretaries have grown substantially over time. One must complete professional training via the Institute of Company Secretaries of India in order to become a company secretary (ICSI).

The inclusion of a secretary in the name of this specialty may confuse those unfamiliar with the idea. A Company Secretary performs no standard secretarial duties. A Company Secretary is a professional whose duty in a business organization is to advise on legal concerns. Companies having a minimum paid-up share capital of Rs 50 lakh are required by law to employ a Company Secretary, under the Companies Act. The Company Secretary is a crucial part of the management team.

A company secretary maintains compliance with all regulations pertaining to the operation of a business. Hence, an understanding of corporate laws and the procedures associated to it are needed to establish company agreements. In addition to being accountable to the business's shareholders and board, the company secretary interacts with the outside world on behalf of the organization. Consequently, he or she is the "face of the organization."

These are some of a corporate secretary's responsibilities

  • Advising on good governance practices and compliance with corporate governance standards as stipulated by the Companies Act, listing agreements with stock exchanges, and several other laws, rules, and regulations.
  • Promotion, establishment, and incorporation of companies, as well as connected concerns.
  • Filing and registering documents on behalf of the firm, including forms, returns, and applications, as an authorized representative
  • Administration of secretarial files, statutory books, and registers.
  • Organizing board and general meetings and drafting meeting minutes
  • All work pertaining to share transfer and transmission
  • Secretarial audit/compliance audit\
  • Compliance certification for businesses that are not mandated to hire a full-time secretary
  • Declaration of yearly reports
  • Advising corporations on compliance with legal and procedural concerns, especially under different acts such as the SEBI Act, Intellectual Property Rights, Labour, and Industrial Laws, establishing subsidiary boards, producing legal papers, etc.
  • Representing the organization or other parties before the Company Law Board, the National Company Tribunal, etc.

A company secretary must correctly keep the firm's records, record in the basic minutes book, convene meetings such as board or general body meetings, and handle topics pertaining to initial public offers (IPOs) and public concerns.

A company secretary must have exceptional communication skills, a strong grasp of the English language, an analytical mind, and the capacity to explain matters to the firm's directors and decision-makers. The employment outlook for Company Secretaries is favorable, and there is room for advancement. With salary beginning at Rs. 20,000 per month, the proposed compensation for business secretaries is rather generous.

Corporate scope

The private and public corporate sectors, banks and financial institutions, stock exchanges, the Department of Company Affairs, company law boards, and government departments offer lucrative employment opportunities for qualified company secretaries. The compensation of the chief executive officer (CEO) improves in proportion to the size and scope of the enterprise. Jobs in private consulting are very profitable.

Liberalization and globalization have a very positive impact on business activities, and therefore, the need for company secretaries continues to increase. In the current era of mergers, acquisitions, and partnerships, this profession anticipates lucrative returns.

Advantages and Duties of a Company Secretary

  • Companies whose share capital is paid in a lump sum (amount varies by location) are normally required to have a company secretary under the Companies Act.
  • The Company Secretary's primary responsibility is to give direction and valuable counsel in financial, secretarial, and legal concerns.
  • The company secretary will be responsible for interacting with stakeholders, boards of directors, and government departments, as well as acting as the company's compliance officer to implement the Securities and Exchange Board of India's rules and regulations.

The demand of the Company Secretary

Company Secretaries are in high demand in the United States, India, the United Kingdom, and other western nations.

The winning corporate secretary will get employment in

  • Departments of Organizational affairs
  • Stock Exchanges
  • Government Departments
  • Company Law Authorities
  • Capable of launching a Company Secretary Ship Consultancy

Company Secretaries also provide the following services (self-employment):

  • Legal, Secretarial, and Corporate Administration
  • Corporate Restructuring
  • International Partnerships Joint Ventures
  • Arbitration and Settlement
  • Project Capitalization
  • Financial Management
  • Project Management
  • Capital Market Relationships and Investor Relations
  • Due Diligence
  • Corporate Consulting Services

Courses Details

  • Foundation course
  • Executive Programme
  • Final Program

Foundational training:

  • This is the designation for the initial/lowest/beginning level of the ICSI's CS course.
  • This is the lowest level at which a student may begin the CS course, i.e. Company Secretaries.

Foundation Course is eight months long. Students are expected to complete the Foundation test within three years after their entrance date. Candidates with a high school diploma (10+2) may apply for the foundation course. Registration for the foundation course is available year-round. In December and June, tests for the foundation course are administered. To sit for examinations in December, candidates must submit an application by March of the preceding year. Similarly, to sit for the June test, candidates must submit an application by September of the preceding year. Thus, registration for each test must be completed at least nine months prior to the examination month.

Due to the fact that the major exams are only administered every six months, the duration between registering and taking the main test may exceed eight months.

Candidates who have completed the foundation course and are at least 17 years old may apply for the intermediate course in the Executive Programme. Graduates, post-graduates (excluding fine arts), and those who have passed the final examination of ICWAI, ICAI, or any other accountancy Institution in India or abroad recognized by the Council of the Institute are eligible to enroll directly in the intermediate course without completing the foundation course. The intermediate course is divided into two groups. Candidates registered for the intermediate courses up to and including the month of February in a given year are eligible to appear in both groups of the Intermediate examination held in December of that year, whereas candidates registered for the intermediate course up to and including the month of August in the following year are eligible to appear in the Intermediate examination held in June of the following year.

Final Course

A student is only permitted to take the Final examination nine months after completing the Intermediate examination. The exams are administered twice every year, in June and December. The deadline for enrollment applications for the fourth exam is the 25th of March (with a late charge of Rs. 100, the 9th of April) for the June examination and the 25th of September.