Accounts and tax used to be the key areas of concern for all corporates. But scenario changing rapidly. Violation of rules and regulations are becoming more and more severe in this liberalised market and causing concern for governments. Failure to follow accounting and taxation rules can be caught in different stages and can be less severe than a legal violation. If a corporation is not following rules, this may be caught only when the company become a failure. Saving a corporate will be comparatively tough when they are violating rules and regulations, comparing to accounting violations which can be caught with less time and corrected.
So the compliance area of a corporation is getting more and more important for corporate success. Rather getting punished when caught has changed to automatic compliances without a chance for violation.
The role of company secretary is becoming more and more important and challenging. At this outset, it has become very important to know what company secretary is doing.
Company Secretary is a statutory qualification provided by Institute of Company Secretaries of India, an authority constituted under Company Secretaries Act 1980. The company Secretary (CS) program is a professional course where students learn how to deal with various regulatory and legal compliances, let it be companies or public bodies. Company secretary acts as link or intermediary between businesses and governments or regulatory authorities.
Right from formation of businesses to effectively running them, is literally in the hands of secretarial department headed by Company Secretary.
Securities market regulatory authority Securities Exchange Board of India, financial regulator Reserve Bank of India and other similar regulators insists various certifications and most of them from Company Secretary. The corporate laws are becoming more and more stringent and the companies need to respond to both enforcement of corporate polices and its enforcement.
What will be the earning capacity of a Company Secretary
Students usually ask the earning potential of a company secretary. Some of them also enquire about the relationship of number of attempts and salary.
Usually number of attempts made by the students to pass the company secretary course is not at all relevant on the growth or salary potential of the candidate. This will become important only when a student takes abnormal number of attempts. Taking two three attempts are ok, but taking five six times are dangerous. If you are not focused on this profession, it is always better to think twice as there is no meaning wasting time. This course requires clear focus and dream.
When a student clear the examination and complete the mandatory training fixed by the ICSI, average salary given by the industry is around 6lakhs per annum. Years of experience can take the salary to big numbers which can run into crores.
Company Secretary Candidates can also find opportunities in the US (US), Canada, Great Britain , Singapore, Newzealand, Srilanka, Australia, and Gulf Countries. ICSI have Memorandum of understanding with many other countries for co operation and mutual accreditation which also enable the company secretary to work in those countries.
Role of Company Secreatary
The company secretary’s (CS) job is to advise company on running, managing, and organizing their business to ensure that the company complies with all legal and regulatory guidelines. He have a big role to play in corporate governance.
Company or similar entities are conducted by the board or top management through meetings of the board. Company secretary helps the company to conduct General Meetings / Meetings (prepare agendas, take minutes, transfer decisions, process correspondence from meetings, etc.), during and outside of meetings, provide legal, financial, and strategic advice. Directors and members of the senior management team look on to the company secretary for all compliance related matters.
So the profession is one of the most senior most position in the management.
After Year 12, students who wish to become company secretaries must pass three CS Executive entrance test, Executive, and Professional levels. These are three stages to becoming a company secretary. Institute of Company Secretaries of India conduct entrance examination round the year and June and December every year for other levels. A student who want to pursue the much sought after profession of company secretaries can start their journey just after plus two and there is no need to under graduation.
The Institute of Company Secretaries of India (ICSI) is a government-run body that administers and administers the Company Secretary Course regulated by the Companies Secretaries Act of 1980. The ICSI is the statutory agency is responsible for shaping and formulating professional CS policy and administrative rules.