Top 3 Types of Rights of a Company Secretary

This article throws light upon the top three types of rights of a company secretary. The types: 1. Consequential Rights 2. Contractual Rights 3. Rights Conferred by the Act.

Company Secretary Right: Type # 1.

Consequential Rights:

(1) He has the right to get adequate remuneration for the duties he has to perform and the responsibilities he has to carry.

(2) As the chief of the office he has the right to control arid supervise the office functions.

Company Secretary Right: Type # 2.

Contractual Rights:

(1) He has the right to enforce the agreement by which he has been appointed.

(2) He has the right to terminate agreement according to the provision laid down in the agreement.

(3) He has the right to exercise his authority.

Company Secretary Right: Type # 3.

Rights Conferred by the Act:

(1) According to the definition of Company Secretary as given in the Act, he has the right ‘to perform all the duties which may be performed by a Secretary under this Act’. Categorically the Act mentions three distinct duties of a Secretary.

They are:

(a) To sign the declaration to be submitted to the Regis­trar claiming that the Company is in a position to commence busi­ness (Sec 149).

(b) To sign the Annual Return to be submitted by a Company within 60 days from the Annual General Meeting (Sec. 159).

(c) To sign the Declaration of Solvency when a company goes for voluntary liquidation by members (Sec 451).

(2) He has the right to have the authority of representing the company in signing the contracts or making statements on behalf of the company.

It has to be noted that rights conferred on a Company Secretary by the Act are largely conditioned by the provisions in the Articles of Association of the company concerned.

Submitted by : Professor Ambika, Category : Secretary