Legal Position or Status of Company Secretary

Legal Position or Status of Company Secretary

Just like other employees hold their position after joining the company a company secretary also have to hold his position. A company secretary is also an employee of the company. Now we will discuss the legal position and status of the company secretary.

Position or Status of CS

1.  Just like a Director, a CS can give directions and instructions.
2. Just like a Director, a CS is also an officer of the company.
3. A CS is an employee of the company as he is appointed to do ministerial and administrative duties.
4. As an employee, CS holds high rank as he has to do administrative duties and the Board of Directors may act according to his directions or instructions.
5. He is appointed by an agreement with the company. Generally, most of the employees are not appointed by agreements. His status by law is higher than that of other employees. He is ranked with auditor or manager of the company with respect.
6. A company secretary performs all duties as per authority given by the board or which are given by Law. He can only exercise such power, which is delegated to him. Therefore he is a servant of the company.
7. Company secretary gives advice to the BOD of the company.
8. He is also known as the KMP of the company.
9. He is also known as a coordinator because he coordinates the activities of various departments and units.
10. A company secretary is considered as the chief administrative officer, of the company. He regularly makes representation and enters into” contracts on behalf of the company. He is solely responsible to the board of directors for the smooth running of the office work.
11. A CS is also an agent of the company as he came into contract with others on behalf of the company.