Discussing the Biggest Corporate Secretary Myths and their Truth
Many people are not familiar with what a corporate secretary is or what that position entails. Hence, corporate secretary myths crop up. A corporate secretary is actually a very important position in private companies and some public organizations. The corporate secretary is meant to provide support to the administration of the organization. The corporate secretary should guarantee that the organization will be in compliance with regulatory and statutory requirements. In addition, the corporate secretary assists the board of directors with the implementation of board decisions.
The Five Corporate Secretary Myths
- Corporate secretaries only know how to take down minutes of board meetings: Actually, the job description of a corporate secretary often requires a strong legal background, particularly in corporate law and securities law.
- Corporate secretaries lack technological skills: In reality, a corporate secretary may be able to craft pertinent social media regulations for the organization. This officer may see the onset of online risks and dictate the stance of the organization towards social media. There are corporate secretaries who are well-versed in technology as well.
- Corporate secretaries cannot handle being general counsel, in addition to being a corporate secretary: The truth is that there are corporate secretaries who do know how to serve concurrently as general counsel. This may depend on the size and nature of the organization that employs the corporate secretary. The advantage of holding these two positions within the company is that there is some cohesiveness. This benefits the organization.
- Corporate secretaries should not be the same person as the general counsel: Actually, there are corporate secretaries who also function as the general counsel of the same organization because it is necessary. Holding two positions is advantageous because they are able to foresee legal or corporate risks arising. They are then able to steer the organization’s administrative decisions to avoid the impact of such risks.
- Candidates for the position of a corporate secretary are usually sourced from among the ranks or the administrative officers of the organization: There is some truth to corporate secretary myths such as this since sourcing the candidates internally provides a seamless transition. However, this is not a hard and fast rule. It is sometimes better to get candidates from external sources so that the organization hires a more suitable corporate secretary.
Implications of Corporate Secretary Myths
The biggest of the legal implications of corporate secretary myths is that it fosters misunderstanding within the organization itself. People get confused as to what exactly a corporate secretary is and does, within, and for the organization. However, it doesn’t have to get to that point. The administrators of the organization may disseminate information about the role of the corporate secretary to the rank and file. This helps clear the air between the office of the corporate secretary and other employees.
Another legal implication brought by corporate secretary myths is that the candidate may lose confidence to carry out duties. The candidate may perceive that there are people within the organization who are not supportive – this creates friction. In this scenario, it is important for the board to clearly express their support for the corporate secretary. This, too, can be disseminated clearly amongst the ranks for better communication and a change of attitude.
Should your company or organization require the services of a corporate secretary, do consider tapping 3E Accounting services as your Indonesia Company Secretarial Service Provider of choice.