In the recent times the Company secretary plays a vital role in the corporate world as the Companies Act 2013 as a KMP.
However there are few glitches in practically life where the CS is only Leveraging for Name Sake rather than giving proper accreditation.Except the Listed and Fortune 1000 Companies, Most of the other Companies , Especially private Companies were hesitate to recognise CS.
As the role of the company Secretary is to Sign the Balance sheet as per the statutory Act( Companies Act2013) Many Companies Directors and Other officers were not considered this profession as white collar job (High profile), Its not encouraging the CS to Employed in Corporates and the remuneration package is also not up to the mark the effort taken to complete the CS course is huge. however the Corporates are offering the pay scale for the new comers and the middle Exprienced folks were only 30k to 50k Is this worth of the CS after struggling hard to complete the Course.
Also, could witness many Companies still yet to appoint Company Secretary, Especially the Korean, Taiwan, Japanese , Chinese , US and other Indian / foreign Companies not ware of the Company Secretary roles and Significance.
The companies are Managing by General Managers Finance and Financial Controllers Who are all Chartered Accountant and Cost Accountants either Both. However the GM designated person were not allowed to sign the Balance Sheet and they are not considered as Officer in Default. However the GMs and Financial Controllers not allowing the Space to Company Secretaries. Which states the negative impact of the Company Secretary in a Company in India.
In most of the Companies the Reporting structure is not Perfect The company Secretary should be Interviwed by Director
And they should report to Directors only, Instead of Financial Controllers and General Managers.Especially the private Companies.
As mentioned above the Law is not enforced properly and the merit of Being CS is not motivational, for this reason few of them turning to self Employed as practising Company Secretary But all of them cannot turn to practice. The demand for the company Secretary is high and the recognition and renumeration is still yet to reach the Bench Mark.
In order to fix this Enforcement of Law in appointing Company Secretary the MCA should put a stringent Rules and Monitor by Auditing or Inspection the Companies periodically to make sure that the KMP we’re appointed for the Eligible Companies and they , should put heavy fine for non compliance of the companies Like the way in Singapore,UK and Australia then only the Company Secretary professionals will be meaningful and useful to the society at Large.
Upon the above facts and details the MCA should emphasis more on the CS in Companieos Like Singapore, UK and Australia and also ensure that the CS remunerations should be decent to encourage the young generation to motivate and peruse the course.
Hope after fixing the glitch henceforth Company Secretary will be as a actual or Real KMP as mentioned in Companies Act 2013.