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Monday, January 7, 2008

Internal Role as a Co-ordinator

Internal Role as a Co-ordinator
(a)Relating to the Board, Chairman and Managing Director. The secretary is
responsible for convening the meetings of the Board and shareholders. He has to keep
the Board informed about the activities of the company and the progress made in
different areas. He has to inform them about the various legal obligations imposed on
them and keep them informed with the latest changes and developments taking place
in the corporate world. He is to guide the Board of Directors. He helps the Board in
taking various decisions. That is why it is said that “while the directors are the brain
of the company, the secretary is its ears, eyes and hands.”
The secretary is responsible for communicating the decisions of the Board to
different executives and the outsiders. The secretary is not vested with managerial
powers, he has to work under the managing or whole-time director. He has to act as
a connecting link between the officials and in the process to maintain utmost secrecy.
The secretary is to see that work of the company is carried on according to the
provisions of the law and that various returns, reports, etc. are sent in time. The
secretary is responsible for collecting the information from different operating units
and communicate the same to the top management. In this way the secretary helps the
management in taking right policy decisions.
(b)Relating to the Employees. The company secretary plays an important role as a
coordinator of the personnel policy of the company. Though for employing persons,
there may be a separate personnel department, but even then the secretary has to
advise the top management on manpower planning and formulation of recruitment
policy and seeing that the good labour relations are maintained. Whenever an
agreement is made with the trade union, the secretary should make a proper note
of the same so that there may not be any misunderstanding or dispute later on. The
secretary must see to it that the provisions of different labour welfare laws are
strictly complied with. The secretary has an important action, he must ensure that
the legal formalities and procedures are followed. The secretary must make every
possible effort to maintain cordial relations with the employees, it is then only that
objectives of the company could be achieved. The creative activities of employees
should be encouraged and wherever possible grants and subsidy from the company
should be given.
(c)Relating to the Auditors. Every company is required to get its accounts
audited by a qualified auditor and submit the annual audited accounts before
thegeneralbodyofshareholdersa ttheannualgeneralmeeting.Apartfromsta tu tory
audit, auditor’s certificates are also required under various other laws. The secretary
has, therefore, to co-ordinate with the auditors. The company secretary has to ensure
that the appointment of auditors is made in accordance with the requirements of the
Companies Act. The secretary has to see that all books and documents, resolutions,
etc. required by auditors for and its work are made available to them in time.

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