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Company Secretary — SPCC STD 11 Commerce — Question

Gujarat BoardEnglish MediumSTD 11 CommerceSPCCCompany Secretary5 Marks
Question
Write down the significance of the secretary.
✓

Answer

The importance of the Secretary is as follows:
  • The company form is a special system in the modern commercial system, where ownership and management are different.
  • Even though the shareholders are the owners, they do not operate directly.
  • The company is managed by representatives elected by the shareholders i.e. the board of directors.
  • The company legally has an artificial personality. The Secretary has made an invaluable contribution in obtaining the certificate of establishment of the company by fulfilling all its formalities and legal requirements.
  • Being knowledgeable in technical matters as a connoisseur of various laws and based on experience can be a best friend and guide for administrators.
  • The secretary acts as a liaison between administrators and owners.
  • It convenes shareholders' meetings, keeps record of meetings, provides necessary information to shareholders through correspondence.
  • On behalf of the company, the secretary handles all the procedures related to share exchange, right share bonus shares.
  • The secretary acts as a liaison officer in dealing with various parties to the business.
  • The Secretary enhances the reputation of the company through efficient administration.
  • Provides leadership to employees encourages them and adheres to discipline.
  • Constantly strives to achieve the set objectives by dividing and coordinating the tasks of the employees.
  • The Secretary has to provide and register various types of forms, statements, documents and other information with the Registrar from time to time.
  • Helps managers formulate policies and takes the company to the pinnacle of progress and proves its efficiency.
  • Thus, the position of Secretary is important for managers, company, employees, shareholders, creditors, government departments, company registrar etc.
  • The secretary has made a valuable contribution to the development of the company.
  • Growth of companies means increase in production-increase in sales-creation of employment.
  • Thus, the Secretary indirectly contributes to the development of the country.

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