Why do you need to pay secretarial retainer fees ?
Ever wondered why you need to pay secretarial retainer fees and what are you paying for? In this article you will understand the reason.
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Ever wondered why you have to pay secretarial retainer fees for your company secretary? Being appointed as an officer of your company means that your secretary has a liability to ensure compliance with the laws and regulations of Malaysia at all times. Understanding the role of a company secretary is important for you as a business owner to make the right choice to engage a properly qualified and experienced company secretary as your partner to provide you with all that you need.
Duties and responsibilities of a company secretary include but are not limited to the following:
Attend board meetings
Ensure the company is in accordance with the Companies Act
Maintain secretarial records of the company
Handle and organize the Annual General Meeting
Maintain regular communications with shareholders and directors
Prepare and file the company’s annual return
Update and maintain the company’s statutory books and documents
Update the Companies Commission of Malaysia (SSM) about any changes in the company’s statutory information.
To assist with the registration and governance of the company
An experienced company secretary can assist you in the incorporation of your new company and ensure a smooth company registration process. A digital company secretarial firm even allows your Company Secretary to begin the verification and KYC process from wherever you are. A company secretary not only helps you with starting a company, but they may also provide advice on good corporate governance, and other corporate exercises.
To ensure that the company is compliant with current laws and regulations
A company secretary needs to be appointed within 30 days from your company incorporation date. There are many other legal requirements that should be fulfilled at all times such as corporate tax submissions, the application for business licenses and compliance with certain employment laws, etc. A company secretary can advise and get you in touch with relevant professionals that provide such services.
To attend Directors' and Shareholders' Meetings and document the minutes and resolutions
A company secretary is sometimes required to attend meetings of directors. They are required to attend any meetings of shareholders and are required to prepare the agenda of the meeting. A secretary must ensure that the meetings are properly called, constituted, and carried out in accordance with the law of meetings. The company secretary has to prepare the minutes of meetings and follow up on any decision made during the meeting as instructed. Where a written resolution is sufficient, the company secretary would have to prepare and circulate such resolutions to the directors to be signed.
Ensure company details are always up to date
Company structure changes from time to time as the company grows. A company secretary is responsible for notifying the SSM of such changes and is required by law to update all related company documents that are kept in the registered office. The constitution, minute books, financial statements, meeting minutes, and resolutions are required to be kept at the registered office by the company secretary.
In a nutshell, even though it is a statutory requirement as stated in the Companies Act 2016 for all companies to appoint a company secretary, the company secretary does not seem to be doing much in terms of contributing to the operation of the company. However, as an officer of the company, their role is not merely administrative but also advisory in nature, especially in corporate governance matters and boardroom procedures. Partner with a trusted company secretarial firm to ensure that your company's compliance is always met at all times, and one where you can get sound advice so that you are able to make better and informed decisions.
Feel free to contact Allpro Consultants whenever you need any kind of assistance in the appointment of a company secretary.