4 Functions of Corporate Secretary for Business

Rancakmedia.com - Company secretary (Corporate Secretary) is an individual or person in charge of a work unit that carries out the function of corporate secretary, whose main task is to bridge communication between the company and the public and maintain information disclosure.

The term Corporate Secretary comes from the Latin, namely "secretum" which means secret, where the secret meaning here is a person who has a vital function for a company.

In general, most people think that the secretary is an assistant to a head or leader who accepts dictation, prepares correspondence, receives guests, checks or reminds his boss about his official obligations or agreements and performs many other related obligations to increase effectiveness. from its leadership regarding other obligations related to increasing the effectiveness of its leadership.

The corporate secretary is also responsible for ensuring that the company has complied with the principles of Good Corporate Governance (GCG) as well as all currently applicable laws and regulations. The corporate secretary carries out the function of ensuring compliance and administrative decision-making within the company, as well as performing the communication function in order to build intangible assets such as the company's goodwill.

The main function of the company secretary is

In its development, the corporate secretary is the liaison between the company and the Financial Services Authority (OJK), investors, analysts and the public, who is responsible for ensuring the company's compliance with applicable regulations and the principles of good corporate governance.

The corporate secretary will play an important role as a mouthpiece for the company or as a spokesperson. The corporate secretary needs to be aware of any material events that could affect the share price on the stock exchange. In addition, they need to be aware of the conditions and prospects of companies that can affect investors' decisions in investing.

In addition, the delivery of material events or information and other important events, such as cooperation contracts or termination of material cooperation contracts, information on the purchase or sale of material assets, is also eagerly awaited by the public.

4 Functions of Corporate Secretary

Below are the main functions of the corporate secretary:

Office of the Board

Ensuring the availability of information in decision making by the board of commissioners and directors. Good decision making is also supported by the company secretary's efforts to ensure the presence of meeting participants so that a quorum can be reached so that the resulting decisions are legitimate and credible.

The corporate secretary is also responsible for documenting the results of the meeting which will be one of the supporting evidences, if one day the company faces a difficult condition due to a company policy or for the purposes of the directors or the board of commissioners facing legal action.

Compliance

Company compliance with applicable regulations is an important foundation for ensuring the implementation of Good Corporate Governance. For this reason, the company secretary must always update information about rules or regulations that must be complied with by the company along with its administration.

The corporate secretary is also responsible for conveying information on corporate actions to regulators. Currently, capital market supervision is under the authority of the Financial Services Authority (OJK).

In order to carry out the compliance function, the corporate secretary needs to carry out the government relations function which aims to create and maintain company goodwill in the eyes of regulators. The function of government relations must be in the corridor of decency and business ethics.

Relations with Investors (investor relations)

Investors are one of the strategic stakeholders whose decision-making process is greatly influenced by the quality and timeliness of the information they receive.

The company secretary can help ensure material information is conveyed to investors in a timely manner. Information at the wrong time may unreasonably benefit some parties.

Company secretary on duty build communication good relationship with the capital market community, especially analysts. Because analyst reviews will affect the investment decision making of investors.

Corporate Communications

The corporate secretary assists the implementation of the corporate communications strategy program. Good interaction between the company and its stakeholders will contribute to the company's business performance. In Indonesia, company secretaries are incorporated in a forum called ICSA (Indonesia Corporate Secretary Association).

Conclusion:

The term secretary comes from the Latin word "secretum" which means secret, where the secret meaning here is a person who has a vital function for a company. The corporate secretary carries out the function of ensuring compliance and making administrative decisions within the company, as well as performing the communication function in order to build intangible assets such as the good reputation of the company.

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