Introduction about CS (Company Secretary)
The Institute of Company Secretaries of India (ICSI) is constituted under the Company Secretaries Act of 1980 to develop and regulate the Company Secretaries’ profession in India. The origin of this profession can be traced back to 1960 when the Company Law Board started a course in Company Secretaryship, leading to a Government Diploma in Company Secretaryship. Tremendous growth in the number of Company Secretaries led to the formation, in 1969 of The Institute of Company Secretaries of India under Section 25 of the Companies Act, 1956. The Institute of Company Secretaries of India has been converted into a statutory body under the Company Secretaries Act 1980.
Behind every successful man is a woman. This saying can be twisted a little to suit our purpose: ‘Behind every successful company is a dedicated Company Secretary. ‘
A company secretary corresponds with the public and hence is also termed the ‘spokesperson’ of the company. So let’s embark on a journey to unveil the happenings in the life and making of a company secretary.
A Company Secretary ensures compliance with all laws relating to a company’s operation. Knowledge of corporate laws and their related rules is mandatory to formalize business deals. Apart from being responsible to the company’s shareholders and directors, a company secretary also communicates with the outside world on behalf of the company. Hence, they are the ‘face of the company.’
A company secretary’s role starts from the very moment when the idea of a company’s formation is conceived. Although the concept of the formation of a Company Secretary (CS) may vary from company to company, the knowledge and training acquired by company secretaries make them versatile to carry out various functions in Finance, Accounts, Legal Administration, and Personnel areas in addition to their secretarial duties and responsibilities. A company secretary is recognized as one of the company’s principal officers by various enactments. Company secretaries, thus, occupy a pivotal and versatile position in companies. Companies having a paid-up share capital of above Rs. Fifty lakhs or more are statutorily required to appoint a whole-time CS.
The career course of a Company Secretary is not only prestigious but also financially rewarding. The post of a Company Secretary is considered respectable in the hierarchy, and it is one of the most important posts a person handles. In this position, one is the mediator between the company and its Board of Directors, government, shareholders, and regulatory authorities. They guide the Chairman and the Directors in making the best use of their responsibilities under various laws.
A company secretary is a top-level employee in a company whose responsibility is to ensure that the company adheres to all the government’s legalities and, therefore, advises the directors on various policies and operations of the company. Having a company secretary has been made compulsory by a government act for large companies. Since the boost in the economy in recent years, many companies have grown tremendously, and new companies have emerged. Therefore, the need and scope for company secretaries have also increased tremendously over the years. To become a company secretary, one must take a professional course at the Institute of Company Secretaries of India (ICSI).
The word secretary in this specialization’s name is misleading for one new to the concept. A Company Secretary has nothing to do with regular secretarial work. A Company Secretary is a professional whose role in a corporate setup is as an advisor for legal matters. As per the Companies Act, a statutory requirement is that companies with a paid-up share capital of a minimum of Rs 50 lakhs must appoint a Company Secretary. A Company Secretary is a vital member of the company’s management.
A company secretary ensures compliance with all laws relating to a company’s operation. Knowledge of corporate laws and their related rules is mandatory to formalize business deals. Apart from being responsible to the company’s shareholders and directors, a company secretary also communicates with the outside world on behalf of the company. Hence, they are the face of the company.
These are some of the duties of a company secretary :
Advising on good governance practices and compliance with corporate governance norms prescribed under the Companies Act, listing agreements with stock exchanges, and various other laws, rules, and regulations Frett Board.
Promotion, formation, and incorporation of companies and related matters.
Filing and registering documents, including forms, returns, and applications on behalf of the company as an authorized representative
- Maintenance of secretarial records, statutory books, and registers.
- Arranging board and general meetings and preparing minutes of the meeting
- all work related to shares and their transfer and transmission
- secretarial audit/compliance audit
- compliance certificate for companies not required to employ a whole-time secretary
- the signing of annual reports
Advising companies on compliance with legal and procedural aspects, particularly under various acts like the SEBI Act, Intellectual Property Rights, Labour, and Industrial Laws, setting up subsidiary boards, drafting legal documents, etc.
Representing the company or other persons before the Company Law Board, National Company Tribunal, etc.
A company secretary would have to maintain the company’s records properly, record in the basic minutes book, call board meetings or the general body meetings, and handle matters related to initial public offerings (IPOs) and public issues.
A company secretary needs to have excellent communication skills, an excellent command of English, an analytical mind, and the ability to explain things to directors and decision-makers. Job prospects for Company Secretaries are quite good, and there is also scope for growth. The remunerations offered are good for company secretaries, with salaries starting from Rs. 20,000 per month.
CAREER SCOPE:
Qualified company secretaries can find well-paid positions in the private and public sectors, corporate sectors, banks and financial institutions, stock exchanges, the Department of Company Affairs, company law boards, and government departments. The larger the company and the wider its field activity, the better the payments earned by the CS. Private consultancy jobs are a very lucrative option.
Liberalization and globalization greatly boost corporate activity, and the openings for company secretaries continue to grow. This profession looks forward to rich dividends in the present age of mergers, acquisitions, and tie-ups.
Benefits and Scopes of Company Secretary :
• Companies that pay a lump-sum share capital (the amount varies from place to place) generally require a company secretary in terms of the Companies Act.
• The Company Secretary’s main function is to provide guidance and precious advice in financial, secretarial, and legal matters.
• The company secretary will deal with the stakeholders, Boards of directors, and Government Departments. The individual will also act as the company’s compliance officer to incorporate the rules and regulations of the Securities and Exchange Board of India.
The demand for a Company Secretary :
There is a huge demand for Company Secretaries in the USA, India, the UK, and some Western countries.
The successful individual company secretary will acquire a job in
• Departments of Company affairs
• Stock Exchanges
• Government Departments
• Company Law Boards
• Can start up a Company Secretary Ship Consultancy firm
Company Secretaries in Practice also render the following Services (Self Employment):
• Legal, Secretarial, and Corporate Governance
• Corporate Restructuring
• Foreign Collaborations Joint Ventures
• Arbitration and Conciliation
• Project Financing
• Financial Management
• Project Planning
• Capital Market and Investor Relations
• Due Diligence
• Corporate Advisory Services
Courses Details:
*Foundation course
*Executive Programme
*Final Course
Foundation course:
• This is the identification for the first/lowest/starting level of the CS course conducted by the ICSI.
• This is the lowest level at which a student can pursue the CS, i.e., the Company Secretaries course.
The duration of the Foundation Course is eight months. Students are required to pass the Foundation examination within three years from the date of their admission. Candidates who have passed senior secondary (10+2) can apply for the foundation course. Registration for the foundation course is open throughout the year. The exams for the foundation course are held in December and June. Candidates should apply before March to appear for the December exams. Similarly, the candidate should apply before the last September to appear for the June exam. i.e., the Registration for each examination should be done at least nine months before the month in which the test is held.
Since the main examinations are conducted once every six months, the actual time gap between Registration and appearing at the main examination may be more than eight months.
Subjects:
01. English and Business Communication (FCEBC)
• Part A: English – 50 Marks
• Part B: Business Communication – 50 Marks
02. Economics and Statistics (FCBE-BE)
• Part A: Economics – 50 Marks
• Part B: Statistics – 50 Marks
03. Financial Accounting (FCFA)
04. Elements of Business Laws and Management (FERBAM)
• Part A: Elements of Business Laws – 50 Marks
• Part B: Elements of Management – 50 Marks
05. Information Systems and Quantitative Techniques (FCISQT)
Prizes Award:
ALL INDIA PRIZE AWARDS:-
1. Sultan Chand Trust Prize Award
2. Sultan Chand Trust Prize Award
3. Sultan Chand Trust Prize Award-
4. Durga Devi Saraf Memorial Gold Medal(Only for Females)
5. Elvina Pinto Memorial Prize Award
6. LATE Shri G V Setty and LATE SMT.Kusumamba Memorial Award
7. LATE Madineedi Ramakrishna Subhadra Memorial Award
Awarded To: Awarded to a candidate who passes all papers of the Foundation Examination, at the first attempt, in one sitting, without claiming exemption in any subject and obtaining the highest marks in the aggregate, considering the performance of all successful candidates.
Executive Programme:
Candidates who have passed the foundation course and are not less than 17 can apply for the intermediate class. Graduates, post-graduates (excluding fine arts), and those who have passed the final exam of ICWAI, ICAI, or any other accountancy Institution in India or abroad recognized by the Council of the Institute can directly enroll in the intermediate course without doing the foundation course. The middle course consists of two groups. Candidates registered for the intermediate course, including February in a year, are eligible to appear in both the groups of the Intermediate examination held in December of that year and those registered up to and including August in a year are eligible to appear in the Intermediate examination held in June of next year.