Company secretaries have a big role in managing firm’s affairs
Company secretaries have a major role in ensuring smooth running of the organisation.
What does a company secretary do for an organisation? Does he send reminders to directors for meetings and points out shortcomings in the governance? Is he the key resource who navigates and builds relationships between the management of the company and key stakeholders?
Is he the individual who is expected to advocate integrity and transparency and make it part of the culture of the organisation? You may realise company secretaries that you know embody almost all of these desirable qualities if not more.
In these dynamic times, the business sphere evolves constantly in real time. Companies today, have to address and initiate dialogues for key issues such as shareholder priority versus stakeholder priority, how to handle increased political and financial destabilisation, and workplace process disruption caused by technology. In all these matters and more, the company secretary should ideally play a primary role.
Internally, the manner in which company secretaries are approaching their roles, and the manner in which the board of directors are approaching the company secretaries is evolving as boards are becoming more sophisticated.
Dynamic business practices
In times of changing governance practices and policies, it is important to know the set of qualities and skills, governance professionals, especially company secretaries, would require as we move towards the future. The role of the company secretary is no longer isolated to managing board requirements and being a conduit for internal and external communication.
It has now evolved due to dynamic business practices. Companies are addressing technology and data as a disruptor in the board room. The more immediate the analytics which are available to the board members, the greater the likelihood of timely and well-informed decisions. Availability of real time analytics changes the way boards decipher and reach decisions.
Real time analytics and predictive analytics enable directors to have a greater overview of the business beyond what is being presented in the board meetings. The data and number crunching required by company secretaries has thus increased.
Company secretaries are now moving towards being more of a trusted advisor, less minute taker. The role is less about simply managing a checklist on deliverables and more about encouraging performance. Their roles have evolved into becoming partners with the board to lift the performance of the organisation as opposed to ticking a chart to ensure that compliance and regulation norms are met.
Individuals in this role are an asset as they are a reservoir of information within the organisation. Secretaries are becoming curators of information for directors enabling them to make timely and good decisions. At a broader level, their constant endeavour is to be informed about stakeholder dynamics as well as managing external context, reputational risk and information on competitor environments.
Company performance
Investor relations have evolved over the years. It has become more sophisticated and developed. Many years ago, investors would recommend to the company secretary and boards to be “camera ready” and be fully aware of the company performance. Today more members of the board are interacting with the media, shareholders and stakeholders.
Given the changes and complexities over the years, secretaries have to act as advisors. All this sits firmly in the sphere of the company secretary, who is increasingly being asked to drive the modern governance agenda and act as a valued strategic advisor to the business and the board. Company secretaries occupy a unique position that encompasses strategic and operational activities, bridging the gap between directors and the organisation.
As such, building strong relationships at all levels is a critical skill. The use of emotional intelligence and being a uniting force is a key trait of the secretary. Being connected means greater effectiveness, so a company secretary should have a positive profile in the organisation and be a familiar face with the board and the business.
In all this, they must also pay added attention to the shareholders of the organisation. Ensuring timely corporate action dates are released to the registrars and stakeholders, ensuring directors’ engagement with shareholders and ensuring effective and timely communication with the shareholders, brokers, registrars and stakeholders is vital. Covid-19 has been used as an excuse by companies for not complying on many fronts, now secretaries need to get into full form and bring back complete compliance.
On the individual plane, the company secretary needs a level of gravitas and confidence in order to be respected and valued by the management. One could then see them as a valuable resource to be utilised in harmonic synergy with the board, management and shareholders.
