Company directors and secretaries play crucial roles in the development of a company. The formation of a competent and trained board of directors and secretaries can significantly boost your company’s growth and success. A company director is typically selected by a limited company to oversee its business and financial affairs, while the company secretary is appointed by the directors. Although secretaries can perform duties similar to directors, the legal responsibility for these tasks ultimately rests with the directors.
Running a company effectively requires the presence of directors. Essentially, directors serve as the company’s “board of directors.” They must conduct themselves with honesty, professionalism, and adherence to the law. Company directors have the authority to enter into valid contracts with third parties such as buyers, lenders, or suppliers, and they act as custodians of the company, not as individual shareholders. A company director bears the responsibility of enhancing the company’s success by achieving its business objectives. Independent judgment, proper skills, experience, diligence, and avoidance of conflicts of interest are key attributes of a competent director. They should also decline any benefits offered by third parties. Appointing corporate directors can be particularly advantageous when establishing a company. It is the director’s responsibility to align with the company’s policies and fulfill assigned tasks, ensuring that their vision aligns with the company’s direction.
The company secretary primarily handles the administrative tasks of the company. Their main duty is to monitor whether tasks assigned by the directors are being completed on time. The role of a secretary is not limited to clerical or secretarial work. While it is not a legal requirement to appoint a secretary, directors often do so based on personal preference. Secretaries are responsible for submitting confirmation statements and ensuring the timely submission of all essential documents to the company’s registered office. They also oversee other administrative matters, such as arranging board meetings. In the absence of a company secretary, it becomes the director’s responsibility to fulfill these duties. Becoming a company secretary does not require formal or professional training. Secretaries play a vital role in a company’s development, with key responsibilities including keeping the company informed about changes, communicating with shareholders, maintaining paperwork, and handling the signing and filing of confirmation statements.
Company directors and secretaries are two indispensable components of a company’s structure. Without them, running a company would be virtually impossible. They both contribute significantly to a company’s development and establishment.
