Have you ever wondered why your company needed a company secretary?
Company Secretary is indispensable for legal compliance, efficient administration, and effective governance within your company. Their expertise ensures your company operates smoothly and in accordance with the law, and corporate governance practices and safeguarding its reputation and success.
Each Company is required to have a Company Secretary. This requirement is not just advisable—it’s mandatory. According to section 211(6) of the Companies Act 2019 (Act 992), operating without a company sectary will result in significant penalties. Failure to appoint a Company Secretary within six months of business operations will incur a daily administrative penalty of 25 units which is equivalent to Three Hundred Ghana Cedis
Act 992 outlines specific qualifications necessary for a Company Secretary, ensuring they possess the requisite knowledge and experience to fulfill their role effectively. Thus they must possess qualifications such as:
a) professional or tertiary qualifications relevant to the role,
b) a minimum three-year apprenticeship under a qualified Secretary,
c)membership in recognized professional bodies like the Institute of Chartered Secretaries and Administrators or the Institute of Chartered Accountants, Ghana, or
d) good standing as a barrister or solicitor in the Republic.
These include professional or tertiary qualifications and membership in recognized professional bodies such as the Institute of Chartered Secretaries and Administrators or the Institute of Chartered Accountants.
The duties of a Company Secretary, as detailed in section 212 of Act 992, are essential for the smooth functioning of a company. From assisting the Board in compliance matters to maintaining statutory registers and advising directors on their responsibilities, their role is far from clerical. Thus, a mere high school graduate lacks the qualifications and qualities necessary to fulfill these responsibilities effectively.
It is therefore important for Company to have Company secretary.