Are you planning to incorporate a company in Singapore?
Have you already registered a company in the country?
Well, you need to have a company secretary who is a resident of Singapore, if you said yes to both or any of the above. The Singapore law says a company secretary must be appointed within 6-months of the incorporation of a company in Singapore. This law might cause inconvenience to businesses, especially low-budget start-ups unless they know the benefits of the law. So, here we are discussing the importance of having a company secretary.
Responsibility for the Compliance of the Law :
As per the laws of Singapore, a company secretary has the responsibility to make the directors of the company aware of any updation in the law. It is his/her responsibility to make sure that the company complies with every law of the land. This means a company secretary has the highest standard of statutory responsibility for the compliance of the laws by the company. So, you can rest tension-free after appointing a company secretary, as he/she will actively do the work he/she is responsible for.
Communication with the shareholders :
In addition to being a statutory protector to the company and advisor to the directors, a company secretary is also the major communicator between the company and the shareholders. It is the secretary’s duty to disseminate financial statements timely to the shareholders and give them a proper tool to get involved in the decision-making process of the company through the Annual General Meeting. So, having a company secretary means having a proper communication channel between the company and its shareholders.
Maintenance of High Order Corporate Governance :
Having a high-order corporate governance is one of the most important factors in the success of a corporate business. A company secretary whom you hire from a reliable source such as Sandhurst Consultancy will always be a person well-trained in the best practices of corporate governance. This clearly means, having a company secretary in your company ensures that high standard corporate governance is maintained by your company.
Authentication of Company Regulations :
A company Secretary in Singapore is legally empowered to authenticate documents and any formal proceedings. The certified copies of any company regulations are executed by the company secretary (along with any of the directors) which is only the valid proof of passing of any company regulations. Unless the company secretary certifies, no resolution will be considered valid by law.
You see, a company secretary is not just a name that you need to file with ACRA; neither the person appointed as company secretary is there only for eating your start-up money. The company secretary is in a true sense custodian of your company who is bound by law to act in favor of your company. If there’s no company secretary, your company can get into lots of legal and functional troubles. With the appointment of a company secretary, you can bring peace of mind for yourself, company directors, shareholders and literally anyone related to the company. So, the mandate of appointing a company secretary is created for your benefit only.
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