Gone are the days when the primary duties of Company Secretaries included minute-taking and board correspondence only. Now, they are the chief governance specialists within an organisation, with a far more proactive role. This evolution reflects the growing complexities of corporate governance, particularly in relation to ASX-listed companies.
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Legal Responsibilities and Compliance
Company Secretaries in ASX-listed companies carry extensive legal responsibilities under the Corporations Act 2001 and the ASX Listing Rules. Their role involves ensuring compliance with these laws and regulations and to do this they need to have a good understanding of complicated legal and financial concepts.
Aside from ensuring compliance, Company Secretaries also serve as crucial advisors to the board. They support the board of directors with policies and procedures, insights for good governance practices and strategic decisions.
Characteristics You’re Looking For In A Company Secretary
An effective Company Secretary in an ASX-listed company must be vigilant about potential legal issues and aware of cultural trends and the dynamics of various departments. They must understand stakeholders’ needs, be solution-focused and maintain consistent, transparent and trustworthy processes.
Company Secretarial Services for ASX-Listed Companies
Company Secretarial services for ASX-listed companies are extensive. They include:
- Acting as named Company Secretary for Australian businesses.
- Managing and minuting board, committee and shareholder meetings.
- ASX compliance and advice including continuous disclosure, listing rules, governance principles and corporate action management.
- Officeholder appointments and resignations, share transfers, company incorporations and de-registration in Australia.
- Updating and maintaining minute books and statutory registers, and
- Providing corporate governance advice and assistance including charters, policies and the corporate governance statement.
Why ASX-Listed Companies Need The Expertise Of A Company Secretary
ASX-listed companies are subject to strict financial regulations. Their involvement can help with ASX compliance and prevent potential breaches, fines and regulatory investigations.
The risk of non-compliance for ASX-listed companies increases without a Company Secretary. This creates a negative impact on the company’s reputation, operations and market value.
Non-Compliance with Legal and Regulatory Requirements
Legal penalties and actions can affect the company’s reputation resulting in loss of investor confidence and potential delisting from the ASX.
Corporate Governance Issues
Not adhering to governance standards can lead to ineffective board decisions, unethical practices, lower stakeholder trust, increased regulator scrutiny and loss of market value.
Operational Risks
Operational risks increase due to inadequate management leading to financial losses, organisational disruptions and misalignments.
Financial Reporting Errors
Inaccurate financial reporting can lead to legal and regulatory scrutiny, restatement of financials, investor lawsuits and loss of market credibility.
Stay Compliant With A Company Secretary
The Company Secretary plays a vital role in ensuring the smooth operation of ASX-listed companies. Hire a Company Secretary to handle your corporate responsibilities and ensure efficient compliance. This reduces your risk of potential breaches, fines and regulatory investigations.
At Carbon, we understand the importance of this role and can connect you with experienced Company Secretaries. If you’re in need of expert assistance in this area, don’t hesitate to ask our CFO services team who can guide you to a trusted and proficient Company Secretary.
