Rights and Powers of Company Secretary
A company secretary is a high-ranked administrative officer of the company. The rights and powers of the company secretary are mainly governed by his service contract with the company. Moreover, he is the spokesperson of the board of directors. S/he is a high-level officer. S/He enjoys certain rights and power as per contract made with the company.
The Secretary has the power to enter into contracts relating to the day to day administration of the company. Therefore, the board of directors delegates some powers upon him. Generally, a company secretary enjoys the following powers and rights:
- Supervision and control:
Since the company secretary is the head of the secretarial department, he has the right to supervise and control the activities of that department. As a head of the office, a company secretary has the right to supervise, direct and organize all office activities of subordinate offices.
- Signing the documents:
Being the principal officer of the company, the company secretary is entitled to sign the documents especially, on which the company seal is affixed. Being a principal officer, s/he can sign contracts, proceedings of the company meeting, files and documents on behalf of the company.
- Issue of testimonial:
Being a principal officer of the company, the company secretary can issue testimonials or any other certificate in favor of any employee of the company. S/He can issue testimonials to employees on behalf of the company.
- Preferential creditor:
At the time of the dissolution of the company, the company secretary can claim all of his dues as like as a preferential creditor. During winding up of a company, s/he can claim his/her legal dues as like as a preferential creditor.
- Claiming damage:
The company secretary is entitled to receive notice of reasonable dismissal. As per the contract, s/he has the right to claim his/her salary and other allowances. In the case of wrongful dismissal, he can drum compensation. S/He can also take legal action against the company if there is any breach of contract.
- Exercising power:
A company secretary is entrusted with some powers by the board of directors. So he can freely exercise those powers in company management. S/He has the right to apply power as authorized by the board of directors.
- Attending a meeting:
The company secretary has every right to receive notice of meetings and to attend all general or board meetings. S/He has the right to be present in the meetings of the shareholders and board of directors.
Major Rights and powers are summarized below –
- S/he can supervise; control and he can direct assistant officers and employees.
- S/he can sign and authenticate the scheduled meetings.
- S/He can attend the meetings of the shareholders and the Board of Directors.
- S/He can sign any contract/agreement on behalf of the company.
- At the time of insolvency, s/he can claim his dues like a creditor.