Company secretaries quit as firms grapple with governance lapses
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Most of them are quintessential backroom boys whose job is to keep companies they work for on the right side of law. And, it's they who often end up paying an immediate price when employers indulge in sharp practices. The quiet exits of these professionals from listed companies in recent times bear the truth.
They are the company secretaries (CS), more than 120 of whom have resigned in just three months as one after another small and mid-sized firms grappled with governance lapses and other tricky issues. Only a few of them are lucky enough to move on to greener pastures.
As companies hold back information, dress up books, sidestep rules, dodge tax, accumulate debts, face downgrades and trip on the compliance minefield, CS are the first casualty.
"Under the securities law and Companies Act 1956, CS has statutory obligations and his role goes beyond the company," said M S Sahoo, secretary, The Institute of Company Secretaries of India, a statutory body in India that develops and regulates the profession.
Many of them call it a day as they can longer handle the stress. "Many times due to statutory disclosures, a CS gets into conflict with the management and some times this conflict goes beyond repair. But the recent resignations are not alarming considering the number of people in the profession."
There are about 25,000 registered CS in the country, many of them working for closely-held companies. They liaison between board of directors, stakeholders, banks and regulatory authorities like Sebi, RoC, RBI, I-T,IRDA and stock exchanges, and are responsible for disseminating regulatory information. Besides, their role in fulfilling compliance is as important as the MD or any other senior executive. (Economic Times)
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