The position of a company secretary, often referred to as a company secretary, is pivotal in ensuring internal compliance and managing essential company records for legal purposes. Contrary to common perception, their responsibilities extend far beyond file management, encompassing regulatory compliance, administrative tasks, and advisory functions crucial for the organization’s smooth operation.
This article serves as a comprehensive guide to elucidate the multifaceted role of a company secretary in Indonesia. By delving into the duties, qualifications, and regulatory frameworks, readers gain valuable insights into the significance of this position within the company landscape. Understanding the diverse responsibilities of company secretaries empowers stakeholders to appreciate their indispensable contributions to governance and compliance, fostering transparency and efficiency within organizations.
Who is the Company Secretary?
An individual in charge of internal compliance and all firm records needed for legal purposes is known as a company secretary. As a result, they frequently handle company resolutions, regulatory filing management, record-keeping, and other administrative duties.
They coordinate the organization of certain legal duties that are important to the business with directors and CEOs. The corporate secretary has an obligation to notify the directors right away.
Corporate secretaries’ main responsibility is to provide correct paperwork to fulfill legal obligations, but they also act as dependable resources and consultants for boards and senior management teams. They may occasionally be asked to offer counsel and direction about the duties of the board and the logistical teams. As a result, company secretaries are now recognized as senior strategic officers who are essential to the administrative and legal control of the organization.
Charges Assigned to the Company Secretary
For those who don’t know, the first thing that springs to mind when you hear the term “company secretary” is sorting files. In actuality, a business secretary’s responsibilities are rather varied. In addition to general affairs, they have to handle bureaucracy, compliance, and administrative duties. In a nutshell, a company secretary’s duties and responsibilities are as follows.
- Assisting and Conducting Annual General Meetings of Shareholders (“AGMS”)
AGMS scheduling is the responsibility of corporate secretaries. They must also take part in every committee and board of directors meetings, which include creating agendas, inviting relevant parties, scheduling meeting spaces, and anticipating any practical concerns in addition to strategy planning and agenda formulation. In addition to supervising shareholder meetings, the company secretary is responsible for recording any approvals made during the sessions.
- Reminding and Filing the Mandatory Regulatory Compliance
Government in Indonesia has set regulations for mandatory compliance for the corporation. The compliance required by the government not only from the business aspect of a company but also including the compliance that applies to the employees. Failing to file the mandatory compliance may result in a penalty or revocation of a business license.
The Company Secretary’s Duties
A key function of the company secretary is to make sure that the business complies with all relevant rules. Because of the importance of this position, the Indonesian Code of Good company Governance (2006) stipulates that the company secretary would handle compliance responsibilities in the absence of a dedicated compliance department.
The company secretary’s responsibilities must at the least cover legal and compliance, paperwork, and external relations.
- Keeping up with the update of regulatory and compliance regulation.
- Supplying suggestions to the Board of Directors and Board of Commissioners so they can adhere to the regulatory framework.
- Helping the Board of Commissioners and the Board of Directors execute company governance, including:
- Arrangement and recording of shareholders’ general meetings (AGMs).
- The planning and recording of Board of Directors and/or Board of Commissioners meetings.
- The execution of orientation courses for the Board of Directors and/or Board of Commissioners of the business.
- Maintaining book register, shares certificate and shareholders registry at the company
- Specifically for a business supervised under OJK rules, serving as a point of contact for investors, the Financial Services Authority (OJK), and other stakeholders.
Qualifications for Company Secretary Positions
Company Secretary may serve the services either to a general company or to the companies that are supervised by OJK. Although serving a general company does not have a specific criterias set by the government, we can take into account how OJK sets the bare minimum criteria that is qualified as a company secretary. OJK Regulation No. 35 of 2014, Article 9, lays forth the qualifications needed to become a company secretary. A company secretary is required by paragraph (1) to fulfill the following criteria, at the least:
- Competent in the law
- Have expertise in the legal, financial, and company governance domains.
- Recognize the commercial activities of the corporation
- Capable of efficient communication
- Live in Indonesia
According to paragraph (2), the company secretary is required to perform these obligations throughout the duration of their employment.
Summary
In conclusion, the role of a company secretary in Indonesia encompasses diverse responsibilities that are critical for the effective governance and compliance of organizations. Beyond mere administrative tasks, corporate secretaries serve as trusted advisors to boards and management teams, providing guidance on legal and regulatory matters. Their duties range from organizing board meetings and maintaining accurate records to ensuring compliance with regulatory requirements and facilitating communication with stakeholders.
As mandated by OJK regulations, company secretaries must possess a strong understanding of law, finance, and company governance, along with effective communication skills. By adhering to these qualifications and fulfilling their obligations diligently, corporate secretaries play a pivotal role in upholding transparency, accountability, and good company governance practices within Indonesian companies.
Looking for reliable company secretarial services in Indonesia? Look no further than CPT Corporate. With our expertise and experience, we offer comprehensive solutions to meet your company’s compliance needs. From organizing board meetings to ensuring regulatory compliance, our dedicated team of professionals will provide you with the support you need to navigate the complex legal landscape. Contact CPT Corporate today to learn more about how we can assist you in fulfilling your company secretary requirements and maintaining good company governance practices.
