A Company Secretary (CS) is a professional who plays a vital role in corporate governance and compliance within an organization. They are responsible for ensuring that the company complies with legal and regulatory requirements and acts as a link between the company, its board of directors, shareholders, and regulatory authorities. Here’s more information about the role and responsibilities of a Company Secretary.
Corporate Governance
Company Secretaries are responsible for maintaining and promoting good corporate governance practices within an organization. They assist the board of directors in ensuring compliance with legal and regulatory obligations and advise on best practices for corporate governance.
Compliance and Regulatory Matters
Company Secretaries are well-versed in corporate laws, regulations, and procedures. They ensure that the company complies with various legal and regulatory requirements, such as filing statutory returns, maintaining statutory registers, and ensuring proper disclosure of information to relevant authorities.
Board Support and Administration
Company Secretaries provide support to the board of directors in conducting board meetings, preparing agendas, drafting minutes, and ensuring that decisions are communicated and implemented effectively. They also assist in the appointment, induction, and training of board members.
Shareholder Relations
Company Secretaries act as a point of contact for shareholders and manage shareholder communications, including organizing and conducting shareholder meetings, drafting resolutions, and ensuring compliance with shareholder-related requirements.
Legal and Contractual Matters
Company Secretaries often play a key role in legal and contractual matters, including drafting and reviewing contracts, agreements, and other legal documents. They ensure that legal requirements are met, and contracts are properly executed.
Corporate Restructuring and Compliance
Company Secretaries may be involved in corporate restructuring activities such as mergers, acquisitions, or reorganizations. They ensure compliance with legal and regulatory requirements during such transactions.
Ethics and Corporate Social Responsibility
Company Secretaries promote ethical behavior and adherence to corporate social responsibility practices within the organization. They help develop and implement policies and programs that align with ethical standards and social responsibility initiatives.
To become a Company Secretary, one needs to complete the professional course offered by the Institute of Company Secretaries of India (ICSI) in India or the respective professional body in other countries. The course typically consists of three stages: Foundation, Executive, and Professional programs. After successfully completing the course and acquiring the necessary practical experience, individuals can become members of the professional body and hold the designation of Company Secretary (CS).
PROCEDURE
The procedure to become a Company Secretary (CS) involves completing the professional course offered by the Institute of Company Secretaries of India (ICSI) in India. Here’s an overview of the procedure:
Foundation Program
The first step is to enroll in the Foundation Program. To be eligible, you must have completed 10+2 (or equivalent) in any discipline except Fine Arts. The Foundation Program comprises four subjects: Business Environment and Law, Business Management, Ethics and Communication, Business Economics, and Fundamentals of Accounting and Auditing. After passing the Foundation Program, you can register for the Executive Program.
Executive Program
Upon successful registration for the Executive Program, you will study eight subjects divided into two modules. The subjects include Company Law, Cost and Management Accounting, Tax Laws and Practice, Economic and Commercial Laws, Company Accounts and Auditing Practices, Capital Markets and Securities Laws, Industrial, Labour, and General Laws, and Company Law and Economic Laws. After passing both modules of the Executive Program, you can register for the Professional Program.
Professional Program
The Professional Program consists of three modules. The subjects covered include Advanced Company Law and Practice, Secretarial Audit, Compliance Management, and Due Diligence, Corporate Restructuring, Valuation, and Insolvency, Financial, Treasury, and Forex Management, Ethics, Governance, and Sustainability, Advanced Tax Laws and Practice, Drafting, Appearances, and Pleadings, and Elective subjects. After passing all three modules, you can move to the next step.
Practical Training
After clearing the Executive and Professional Programs, you must undergo a mandatory 15-month practical training. During this period, you gain hands-on experience in various areas of company secretarial work under the guidance of a practicing Company Secretary or in a company’s secretarial department.
Membership
Upon successful completion of the practical training, you become eligible for Associate Membership of the ICSI. You are required to apply for membership and pay the necessary fees. Once your membership is approved, you can use the designation of “ACS” (Associate Company Secretary).
Continuing Professional Education (CPE)
As a Company Secretary, you must participate in Continuing Professional Education (CPE) programs to enhance your knowledge and stay updated with the latest developments in the field. The ICSI mandates CPE requirements that members must fulfill on an annual basis.
Throughout the course, you are required to clear the examinations conducted by the ICSI for each level. The examinations are typically held twice a year in June and December.
It’s important to note that the specific procedure may vary in different countries or regions. If you are not based in India, you should refer to the respective professional body governing Company Secretaries in your country for detailed information on the procedure to become a Company Secretary in your jurisdiction.
SALARY
The salary of a Company Secretary (CS) can vary depending on factors such as experience, skills, industry, location, and the size of the organization. Here’s a general overview of the salary range for Company Secretaries in India:
- Entry-level: The starting salary for a fresher CS in India can range from around ₹3 lakh to ₹6 lakh per annum. This may vary based on the company, city, and other factors.
- Mid-level: With a few years of experience, Company Secretaries can expect an increase in their salary. The mid-level salary range for CS professionals in India is typically between ₹6 lakh to ₹12 lakh per annum.
- Experienced/Senior-level: As Company Secretaries gain more experience and expertise, their earning potential increases. At the senior level, CS professionals in India can earn salaries ranging from ₹12 lakh to ₹30 lakh or more per annum, depending on their role, responsibilities, and the organization they work for.
It’s important to note that the salary figures mentioned above are approximate and can vary significantly based on various factors. Additionally, salaries can be higher in metropolitan cities and larger organizations compared to smaller towns and firms. Furthermore, CS professionals who hold additional qualifications, such as law degrees or have expertise in specialized areas, may command higher salaries.
The salary of a Company Secretary is also influenced by the demand for their skills and the industry in which they work. CS professionals working in industries such as finance, banking, manufacturing, consulting, and legal services may have higher earning potential compared to other sectors.
TIPS TO INCREASE SALARY OF COMPANY SECRETARY (CS)
To increase your salary as a Company Secretary (CS), consider implementing the following tips:
Gain Experience and Expertise
Focus on gaining relevant experience in the field of company secretarial work. Seek opportunities to work on complex projects, handle diverse responsibilities, and develop expertise in specialized areas such as corporate governance, compliance, or legal matters. Increasing your experience and expertise can make you a valuable asset to organizations, leading to higher salary prospects.
Continual Professional Development
Invest in continuous learning and professional development. Stay updated with the latest regulatory changes, legal requirements, and industry best practices. Participate in workshops, seminars, webinars, and training programs offered by professional bodies like the Institute of Company Secretaries of India (ICSI). Enhancing your knowledge and skills can make you more valuable in the job market and increase your earning potential.
Obtain Additional Certifications
Consider pursuing additional certifications or qualifications that complement your role as a Company Secretary. For example, certifications in risk management, corporate governance, or financial management can enhance your profile and open doors to higher-paying opportunities. These certifications demonstrate your commitment to professional growth and can make you more competitive in the job market.
Develop Leadership and Management Skills
Enhance your leadership, management, and communication skills. Demonstrating strong leadership qualities and the ability to manage teams or projects can position you for higher-level roles and increased compensation. Seek opportunities to take on leadership responsibilities or participate in cross-functional initiatives within your organization.
Network and Build Professional Relationships
Cultivate a strong professional network within the industry. Attend industry events, conferences, and seminars to connect with other professionals, including senior executives and decision-makers. Building relationships can provide valuable insights, mentorship, and potential job opportunities that can contribute to salary growth.
Demonstrate Value and Accomplishments
Consistently strive for excellence in your work and look for opportunities to contribute beyond your regular responsibilities. Showcase your accomplishments and the value you bring to the organization. This can include cost-saving initiatives, process improvements, successful regulatory compliance, or successful completion of complex projects. Communicate your achievements to your superiors during performance evaluations or salary discussions.
Explore Job Market and Negotiate
Keep an eye on the job market to understand the current trends and demand for Company Secretaries. Research salary ranges and compensation packages for similar roles in your industry and location. When negotiating salary, be prepared to articulate your value proposition, highlighting your skills, experience, and achievements. Consider leveraging competing offers to negotiate better compensation packages.
Remember, increasing your salary as a Company Secretary is a gradual process and depends on various factors such as your experience, skills, industry demand, and market conditions. It’s essential to assess your career goals, seek growth opportunities, and consistently deliver high-quality work to maximize your earning potential.
FIRM IN COMPANY SECRETARY (CS)
In the field of Company Secretary (CS), there are various types of firms where professionals can work. These firms provide services related to corporate governance, compliance, legal matters, and regulatory requirements. Here are some types of firms in which Company Secretaries can find opportunities:
Professional Services Firms
Large professional services firms often have dedicated departments or teams that specialize in company secretarial services. These firms provide a wide range of services to clients, including corporate governance, compliance, and advisory services. Examples of such firms include the Big Four accounting firms (Deloitte, PricewaterhouseCoopers, Ernst & Young, and KPMG) and other mid-tier accounting and consulting firms.
Law Firms
Law firms often have corporate and commercial law departments that work closely with Company Secretaries. Company Secretaries in law firms can assist with legal compliance, corporate restructuring, contract drafting, and other corporate legal matters. Working in a law firm provides exposure to legal complexities and allows for collaboration with lawyers and legal experts.
Corporate Organizations
Many companies, including public listed companies, private companies, multinational corporations, and government entities, have in-house Company Secretarial departments. Company Secretaries in these organizations ensure compliance with legal and regulatory requirements, support the board of directors, and handle corporate governance matters specific to the organization. The size and complexity of the organization can vary, offering different levels of responsibility and career progression opportunities.
Company Secretarial Firms
There are specialized firms that focus primarily on providing company secretarial services to clients. These firms cater to the needs of various organizations by assisting with compliance, regulatory filings, and other company secretarial requirements. Working in a company secretarial firm allows Company Secretaries to gain exposure to a diverse client base and work on a range of assignments.
Consultancy Firms
Consultancy firms provide specialized advisory services related to corporate governance, compliance, and regulatory matters. They work with clients across different industries to provide strategic guidance, risk assessment, and compliance solutions. Company Secretaries in consultancy firms may advise clients on matters such as corporate governance frameworks, regulatory changes, and best practices.
Non-Profit Organizations
Non-profit organizations, including charities, foundations, and non-governmental organizations (NGOs), may employ Company Secretaries to ensure compliance with legal requirements and governance standards specific to the non-profit sector. Company Secretaries in non-profit organizations play a critical role in ensuring transparency, accountability, and adherence to regulatory obligations.
When considering opportunities in different types of firms, it’s essential to assess factors such as the size and reputation of the firm, the industry focus, the potential for professional growth, and alignment with your career goals and interests. Additionally, Company Secretaries may also choose to work independently as consultants or start their own company secretarial practice.
CONCLUSION
A career as a Company Secretary offers opportunities in various sectors, including corporate firms, listed companies, public sector enterprises, regulatory bodies, and consultancy firms. Company Secretaries can also work as independent consultants or start their own practice. The role requires a strong understanding of corporate laws, excellent communication and interpersonal skills, and the ability to work with diverse stakeholders within an organization.