Company Secretaries: The Unsung Heroes of Corporate Governance in India
In an era dominated by increasing regulatory complexity and a heightened focus on corporate governance, the demand for qualified Company Secretaries has surged across various industries, accentuating their importance as enablers of strong governance frameworks.
As businesses navigate environmental, social and governance (ESG) principles into strategic decision-making, the role of the Company Secretary has transcended mere compliance to become a strategic advisory function. These professionals are now tasked with aligning business goals with best practices, guiding boards through governance challenges, and ensuring that companies meet regulatory requirements while maintaining high standards of corporate governance.
With their broad expertise in auditing, certifying documents under various legislations, and serving as arbitrators before tribunals like the National Company Law Tribunal, qualified Company Secretaries have emerged as strategic partners. They are now seen as experts in areas such as ESG, insolvency, valuation, social audit, alternate dispute resolution, capital markets, sustainability reporting, cyber security compliance, mergers and acquisitions, and other financial services.
The role of a Company Secretary has undergone significant evolution over the years in India. Once focused on compliance, their responsibilities have expanded to include a strategic advisory function, thanks to the Companies Act 2013, which conferred them with the status of key managerial personnel alongside other top executives.
Academically, the recognition of Company Secretary qualification as equivalent to a postgraduate degree by the University Grants Commission has increased the scope and prestige of the profession. The Institute of Company Secretaries of India now offers a distance learning program leading to certification in Company Secretarial Studies, making it accessible to students from various streams.
To become a qualified Company Secretary, aspiring candidates must first qualify the Company Secretary Executive Entrance Test (CSEET), a computer-based test administered four times a year. The test assesses business communication, legal aptitude, logical reasoning, knowledge of the economic and business environment, and current affairs. Students who fail to clear CSEET can take retests. Graduates or postgraduates from a recognized university are exempted from taking the test.
The growth and evolving role of Company Secretaries have established them as key players in corporate governance, ensuring that Indian businesses operate within regulatory frameworks while prioritizing long-term goals and sustainability. Their increasing influence worldwide has made them sought-after experts across industries.