Many new entrepreneurs are surprised to learn that appointing a company secretary isn’t optional — it’s a legal requirement for an Sdn Bhd. So what exactly is their role?
What is a company secretary?
A company secretary is a qualified, licensed individual responsible for ensuring the company complies with statutory requirements under the Companies Act 2016, and for keeping the company’s records and documents in order.
Why is it mandatory?
Under the Companies Act 2016, every Sdn Bhd must appoint at least one qualified company secretary within the stipulated period after incorporation. This ensures someone is accountable for managing the company’s compliance.
What do they handle?
Key responsibilities include: preparing and filing the Annual Return, maintaining statutory records, preparing resolutions and meeting minutes, and managing changes such as director appointments or share transfers.
What’s the risk if neglected?
Failing to meet statutory requirements can expose the company and its directors to penalties and enforcement action. Entrusting it to a licensed secretary gives you peace of mind and protects your company’s standing.