Under Irish law, every incorporated company must have a secretary. A company secretary plays an important role in governance and administration, taking on a number of important statutory responsibilities.
Company secretaries are appointed by the board of directors, and the position may be taken by one of the directors themselves. In the case of businesses with a sole director, however, another person must be appointed.
This begs the question – does that person have to be employed or in any other way connected to the company? The simple answer is no. Irish law allows for the secretarial role and all its duties to be outsourced, as long as the obligations are met.
So what are the benefits, if any, of outsourcing company secretarial services?
Robust governance and compliance
One of the biggest benefits of outsourcing company secretarial duties is getting access to specialist expertise that can help tighten up governance and compliance. The legal duties of a company secretary include working with the directors to prepare and submit annual financial returns, and certifying financial statements. These are important compulsory requirements that companies must get right, or risk penalties.
In addition, if a company faces liquidation or receivership, it is up to the secretary to prepare the company’s assets and liabilities, which again must be accurate.
Given the financial aspect of these duties, appointing an accountancy firm like Xeinadin Group which also offers outsourced company secretarial services gives you the benefit of professional financial expertise in meeting your obligations. Our in-depth knowledge of financial compliance means you can rest assured that every statutory requirement will be met accurately and efficiently.
Having the support of third-party experts will become even more beneficial with the passing of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill 2024, which will make a number of significant changes to the corporate governance landscape.
Improved efficiency and cost-effectiveness
As with outsourcing many business operations, looking externally for company secretarial support lifts a load from your own shoulders. Company secretaries take on a long list of administrative duties. These include things like organising Annual and Extraordinary General Meetings, board and shareholder meetings, preparing and managing minutes, maintaining and updating company registers (including submitting updates to the Company Registration Office in the correct fashion), and providing legal and administrative support to directors.
Outsourcing these responsibilities would free up a member of your board to focus their time and energy on other areas where they can have more of an impact on the business. Alternatively, rather than employ someone to serve as secretary full time, by outsourcing you can get the benefits of paying for services as and when needed. This kind of flexibility and scalability also comes in handy as the needs of your business change over time.
In summary, a company secretary is an important statutory role with responsibilities straddling both administration and governance. But given the changing regulatory landscape and the associated burdens that brings, including costs, many businesses are finding it beneficial to outsource the role to financial and business service specialists who combine professional knowledge and expertise with flexibility.
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