rights of a company secretary

Posted on 02-04-2016        By ADMIN

rights of a company secretary



The rights of a company secretary mostly flowout of his service agreement with the company. These may be summarized asfollows:

  1. Right to supervise the secretarial department. Being head of the secretarial department, he has the right to control and supervise the activities of the department under his control
  2. Right to sign documents. As a principal officer within the meaning of the Companies Act, he has to sign documents requiring authentication of the company
  3. Right to claim remuneration. The secretary is a servant (employee) of the company and has a right to claim his salary during its lifetime. Before his services are terminated, he can demand a reasonable notice and claim damages for his wrongful dismissal. In the event of the winding up of the company he can claim his outstanding salary as a preferential creditor


But the secretary has no right to:

  1. Make allotment, or register transfer, of shares of the company unless he is specifically authorised by the directors in that behalf and the Articles of the company allow the directors to delegate this power to the secretary
  2. Make any representation on behalf of the company or to enter into any contracts without express authority and consent of the directors;
  3. Borrow in the name of the company

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