The role of a corporate secretary, often misunderstood and underestimated, is a crucial element in this. Running a successful business in Singapore requires more than just a great idea and hard work.
You also need a deep understanding of the legal and regulatory landscape that governs business operations. A corporate secretary oversees a company’s administrative work and ensures compliance with legal requirements.
Despite their importance, misconceptions about secretaries continue to grow, leaving many companies vulnerable to compliance issues and governance challenges. Let’s debunk misconceptions about corporate secretaries in Singapore and understand their responsibilities better.
1. Misconception 1 – The Corporate Secretary Is Just An Administrative Job
The role of a corporate secretary often involves administrative tasks like taking meeting minutes, filing paperwork, and maintaining records. However, this misconception fails to recognise the actual job of a secretary. Beyond clerical duties, corporate secretaries ensure company compliance with laws and regulations. They advise on corporate governance and keep articles of association updated.
Additionally, corporate secretaries liaise with external stakeholders and organize board meetings. They ensure proper procedures are followed by the board and management.
2. Misconception 2 – Anyone Can Be Appointed To Be A Corporate Secretary
One of the most prevalent misconceptions about corporate secretaries is the belief that anyone can be appointed to the position. In Singapore, the Companies Act mandates that a corporate secretary should be a natural person and a resident in Singapore, possessing the necessary knowledge, experience, and qualifications to fulfill the job effectively. To offer company secretary services in Singapore, one should have a thorough understanding of corporate principles and practices, along with extensive knowledge of the legal and regulatory frameworks governing companies in Singapore.
Given these requirements, it’s crucial to select a qualified and experienced corporate secretary who can offer expert advice and guidance to the board of directors and management. By hiring a skilled professional, companies can safeguard their compliance and governance while focusing on driving growth and success.
3. Misconception 3 – An In-House Full-Time Corporate Secretary Is Required
While some companies may believe that hiring a full-time in-house corporate secretary is necessary to manage administrative tasks and ensure compliance with rules and regulations, this may not always be the case. For smaller companies with less complex structures, the cost of hiring a full-time corporate secretary may not be feasible.
Thankfully, in Singapore, companies can engage the services of professional corporate secretarial firms that offer outsourced company secretary services. By outsourcing these services, businesses can benefit from the expertise of a qualified and experienced corporate secretary without the burden of hiring a full-time employee.
Outsourcing these services also provides the added advantage of staying up to date with the latest legal and regulatory requirements. Professional corporate secretarial firms employ experts knowledgeable in Singapore’s corporate governance framework. They offer timely advice and guidance on compliance matters.
In today’s fast-paced business environment, having a qualified and experienced corporate secretary is crucial. By debunking these misconceptions and outsourcing secretarial services, companies can maximise their productivity and efficiency.
So, if you would like to know more about how a corporate secretary can help your business or any other incorporation services, contact us today!
