In control: A company secretary is a firm’s legal representative

If you are endowed with legal aptitude, analytical skill, tact, the ability to keep official secrets, and the will to win by putting in long hours, then a career as a company secretary (CS) is your best bet. A CS is involved with various aspects of management, finance, tax, corporate planning and legal affairs. He/she has to ensure statutory compliance of the company with all requirements on different fronts.

A CS is one of the principal officers of a company and acts as its legal representative. The knowledge and training acquired by him/her enables versatility in carrying out functions in finance, accounts, legal administration and personnel. Companies that have a paid-up share capital of Rs 2 crore or more are statutorily required to appoint a full-time CS (section 383-A of the Companies Act, 1956), who must be a member of the Institute of Company Secretaries of India (ICSI), a professional body constituted under the Company Secretaries Act, 1980.

The enactment of the Companies Amendment Act, 2000, which makes it mandatory for companies that have a paid-up capital of Rs 10 lakh or more to file a compliance certificate signed by a CS with the registrar, has opened up more avenues for company secretaries. All companies which seek listing on the National Stock Exchange (NSE/Bombay Stock Exchange) must have a full-time CS.

What do I have to do?

A CS’s work may be divided into three parts:

a) Legal duties: It is the CS’s responsibility to see that the company complies with statutory legislation and its own articles. A CS must, therefore, understand the relevant aspects of law, keep up with the changes and be familiar with any legislation affecting the company and its business. They are legally liable and responsible for receiving correspondence and for signing documents on the company’s behalf.

b) Confidant(e) of the board of directors: The CS arranges meetings of the board of directors and of other committees. He/she prepares and circulates agendas, takes minutes at meetings and advises board members on questions of company law and practice.

c) General administrative duties: Most company secretaries have financial responsibilities.

They prepare bills, invoices, monthly statements and share transfers, and forecast profits. A CS may also be required to administer the pension fund, help with staff recruitment and training, and deal with company-owned property.

What should I study?

The Institute of Company Secretaries of India (ICSI House, 22, Institutional Area, Lodhi Road, New Delhi-110003) develops and regulates the profession of company secretaries in India. It registers students, imparts training through distance education as well as optional oral classes, and conducts examinations.

What next?

India is witnessing phenomenal growth and expansion in the corporate sector. Employment opportunities for company secretaries exist in business houses, firms, financial institutions, stock exchanges, company law boards and government departments.

Membership of the Institute of Company Secretaries of India has been recognised by the Union ministry of education for appointment to superior posts and services under the Union government. It is also one of the essential qualifications for recruitment to Grades I to IV in the accounts branch of the Central Company Law Service of the department of company affairs.

Some private companies that hire company secretaries are the Aditya Birla group, Bajaj, the Godrej group, Infosys, Larson and Toubro, and Reliance Industries. Salaries range from Rs 25,000 to Rs 75,000 per month, depending on your expertise and experience. The department of public enterprises of the Union government, state governments, stock exchanges and nationalised banks consider senior company secretaries for appointment to the post of director in public sector companies or as members of advisory committees.

Company secretaries’ qualifications have been recognised by universities in India for the purpose of admission to PhD courses. A few universities have also recognised the CS qualification for the purpose of appointment as lecturers.

where to study

• Institute of Company Secretaries of India, New Delhi.

• Institute of Company Secretaries of India, Calcutta.

• Institute of Company Secretaries of India, Mumbai.

• Institute of Company Secretaries of India, Chennai.