Differences between director and company secretary status

Differences between director and company...

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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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By AnonymousUser
28th Feb 2002 11:11

COMPANY SECRETARY
Anonymous

There is no reason why you cannot be a director as well as company secretary. I would press for this if you wish to retain equal control.

The co sec is a legal officer of the company with various responsibilities but in reality not great risk.

My firm provides nominee directorships and acts as company secretary for various organisations with no problem

Hope this helps

GRAHAM ASSOCIATES (INTERNATIONAL) LTD
WWW.GRAHAM-ASSOCIATES.CO.UK
[email protected]


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Teignmouth
By Paul Scholes
27th Feb 2002 23:43

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.

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By neileg
28th Feb 2002 09:35

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.

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By neileg
27th Feb 2002 11:21

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

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