Have you ever wondered about a company secretary’s roles & responsibilities in an Australian business? The title lends the role quite a formal air; however, a company secretary performs much deeper and highly significant functions. The company secretary is at the very heart of corporate governance, compliance, and decision-making processes, straddling every element of the mechanism. Leaving a company secretary out of the picture leaves companies exposed to breaches of laws, disarray, and often reputational injuries.
In Australia, companies, especially public companies, are required by law to appoint at least one company secretary; however, their roles and responsibilities vary greatly. Besides these legal compliance aspects, the role has evolved as a trusted intermediary between management, the board, and regulators.
Understanding the Legal Framework
Under the Corporations Act 2001, public companies must maintain at least one company secretary. It acts as a mechanism to ensure accountability, transparency, and good governance in companies. Private entities may not appoint a secretary by law, but many consider such an appointment as a mechanism facilitating compliance and good governance. Company secretary functions are generally integrated into aspects of corporate advisory and board management, whilst ensuring the organisation obeys its statutory requirements before the Australian Securities and Investments Commission (ASIC).
Key Roles and Responsibilities
The company secretary occupies numerous positions at the company level, covering matters related to hosting compliance, governance, and communication. Some of the main functions include:
- Ensuring compliance with the Corporations Act 2001, as well as ASIC reporting
- Maintaining registers, records, and statutory documents
- Preparing agendas for board meetings, minutes, and resolutions
- Advising directors about their legal and corporate governance obligations
- Being a communications link from the board to regulators and shareholders
- Supporting risk management and ethical practices
These duties highlight why a company secretary is sometimes referred to as the “gatekeeper” of corporate governance.
Why the Role Is Important in Modern Business
Over the years, company secretaries have taken on more roles besides recording and maintaining the records of a company; they are governance professionals and trusted advisors in a business environment. They develop board culture, ensure accountability, and promote best practices in the conduct of an entity.
Going further, they have a keen interest in ESG (Environmental, Social, and Governance) matters and initiate processes to get companies acknowledged as transparent and sustainable by investors and stakeholders. This is probably the best example showing that the company secretary has evolved from a purely administrative ranking to a strategic ranking.
Challenges Faced by Company Secretaries
Despite their importance, company secretaries face challenges. These challenges include staying abreast of constant regulatory changes, dealing with complex corporate structures, and balancing the expectations of directors and shareholders, among others. Besides all this, secretaries of companies find that digital governance tools have become very useful and that they must get to grips with the new technologies for recording, tracking compliance, and board communications.
These challenges require one to be very detail-oriented, adaptable, and able to communicate well.
Strengthen Your Business Governance
If your business wishes to stay compliant, well-structured, and trusted by investors, a company secretary should never be overlooked. Whether it is a very big public company or just an emerging private company, it is governance support that distinguishes one from the other.
Unlock the advantage of employing a proficient company secretary. This will pave the way for strong compliance and business growth in the days to come.
