For some business owners, the word “compliance” causes chills and a lot of headaches. ‘It’s a very time consuming job and I have to focus on bringing new customers into the business! I can’t waste my time doing so much paperwork!’ they usually shout in despair.

Directors of large organizations have a slightly different problem: ‘Is my company compliant with the latest laws? What if my CFO is too busy to turn a blind eye to legal matters’ or ‘Is corporate compliance too hard for me?’

The problem is that every company, large or small, private or public, must comply with the Company Laws and submit the relevant documents to the Mercantile Registry within fixed deadlines. Failure to do so could result in financial penalties and possibly more serious legal consequences for the company.

So what is the solution?

The easiest and usually most cost-effective way to ensure that your business complies with the law, and to allow directors to focus on pursuing the company’s strategic objectives, is to hire an experienced company secretary to manage compliance issues.

Outsourcing this function to company secretarial specialists brings additional benefits, such as:

Save of time and money

the assurance that your compliance issues are handled by professionals with detailed knowledge and experience

no more penalties or risk to your company’s reputation for late filing

Possibility to focus on the company’s core activities instead of its administration and legal matters.

What does a company secretary really do?

A company secretary, known as a corporate secretary in the United States, is a high-level position in a public or private organization, responsible for the company’s compliance, governance, and liaison with regulatory bodies, such as Companies House. A company secretary often acts as the managing director, allowing company directors to focus on the core functions of the company and running the business.

The responsibilities of company secretaries vary depending on the size of the company and the complexity of its operations. Typically, a company secretary in a limited liability company:

provides guidance to the board on the requirements and obligations of members contained in company law

maintains legal records, transfers shares and issues new certificates

updates the company file with the Registrar of Companies within specified time frames

ensures compliance with company law, commercial law, health and safety law, environmental law, labor law, etc.

liaises with shareholders, distributes meeting notices and annual statements

prepares legally required documentation and oversees legal matters. This requires that the company secretary be familiar with business, labor and other laws.

manages company and board meetings, collects and distributes minutes

files accounts and annual return within specified time limits

carry out the instructions of the board

acts as adviser and/or confidant of the president

protects company assets such as statutory books, company records, confidentiality of board work, and other aspects of corporate security

oversees arrangements to allow shareholders and other parties to inspect certain company records and to provide access to statutory and other bodies to inspect other records

for publicly traded companies, it also liaises with the Stock Exchange and ensures that the requirements of the Listing Rules are met.

Conclusion

You will soon realize the benefits of having a dedicated company secretary to manage your compliance matters. Outsourced specialists will provide even more advantages to your business in today’s challenging times.