
If you are operating a registered company in Hong Kong, you will need to involve in several legal and administrative obligations. For that matter, your company will require a secretary who can engage between the company and the Hong Kong authorities. Besides, every company need to have a designated secretary in Hong Kong. This article will help you learn why hiring a company secretary is important in Hong Kong.
The Role of Company Secretary
It is a legal requirement for every enterprise to have a company secretary according to company ordinance’s division 4. Your company cannot be registered without a designated secretary. He or she is responsible for overseeing that a firm operated within a legal framework. That is why, they must be knowledgeable in corporate law and governance which enables the company to be safe from legal matters and various aspects that affect legal corporate reputation. Therefore, it is essential for every company to appoint a secretary.
The Importance of Company Secretary
It is a senior position of a company and more than a legal requirement. A qualified company secretary can drive the success of the company by simply maintaining the good corporate governance. Let’s see why a secretary is important in this industry.
1. Ensuring Legal Compliance
The other key role that is mandatory for company secretary in Hong Kong is to oversee that the company is in adherence to the laws. This encompasses keeping of statutory books, preparation of annual returns and compliance with Companies Ordinance. Non-compliance results in severe penalties such as fines or even legal actions that are all potential disasters for a business.
2. Facilitating Effective Communication
They play a middleman function where he or she communication between the board of directors and the shareholders of a company. They are involved in the preparation of board meetings’ agendas and in taking meeting minutes. And, they are very important for the transparency of the decision-making processes.
3. Supporting Corporate Governance
It can therefore be concluded that a secretary plays a very important role in the process of implementing good corporate governance principles. They also meet the board in governance issues to check if the company is running ethically. It is pivotal to cultivate such support in order to ensure that stakeholders become trusting of the company and to increase the value of the company’s reputation in the market.
4. Managing Administrative Functions
Apart from legal issues and Company’s Corporate Governance, a secretary is also in charge of several administrative duties. This consists of conducting correspondence in the company, keeping and preserving the seals of the company, and protecting organizational records. It makes sense because the involvement of other executives in these tasks would be both inefficient and unnecessary, given the professionals’ specialization in these aspects of running a business.
5. Navigating Complex Regulatory Environments
The legal framework of Hong Kong is quite intricate and it becomes very cumbersome for the companies to manage it unless they have professional help. Company secretary as such have professional knowledge to implement the various laws and regulations that apply to organizations thereby preventing the organization from falling into unlawful troubles.
Hiring a Company Secretary
The appointment of a company secretary in Hong Kong is not only mandatory but more importantly an intelligent business exercise. Making a good choice can results in improved performance of the firm and status. However, the market becomes competitive day by day and it’s not easy to find the true match for your company. Fastlane HR can help you find the top candidate who is the best suit for your company with Executive Search and Recruitment Service. Contact us today and make things easier.