I am currently a
member of the senior management team that consists of myself and 2 others
(currently on an equal footing) plus our MD. The company is proposing to
abolish the senior management team, make the other 2 members directors and
myself company secretary. What are the main duties and differences between
company secretary and director and how will this affect my relative position
within the company if this is what happens?
Thanks
Anonymous
Anonymous
Replies (4)
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No rights or influence
Whilst I agree with Neil over lack of responsibility, you also have no rights or responsibilities, ie you will no longer be part of the decision making process. If that's what you want " go for it" if not think hard.
Paul is right...
.. at least in a strict legal sense. Secretaries do not have the same ability to bind the company and no offical right to speak at directors' meetings. However in a practical sense, based on my experience, you have as much power and control as the MD and/or principal shareholder will allow you anyway.
I have never experienced a situation where my position as secretary was seen as inferior to a director, either internally or in negotiations with banks, customers etc.
Go for it!
A company seretary has a vastly reduced level of responsibilities compared with a director. There are almost no occasions where a secretary will be locked up or fined for misdeeds of their own acts or those of the company. Yet the perception of the world is that company secretaries have similar status to directors.
At the last count I have been secretary of 26 companies and director of only 2.
Companies House have a good leaflet on the rights and duties of directors and secretaries, available on their website http://www.companieshouse.gov.uk