Question: What Is The Difference Between A Company Secretary And A Director?

Who is higher than managing director?

Managing directors have the highest rank within the company and have the authority to fire the executive director.

If the company lacks a managing director or CEO, the executive director takes the spot as the highest-ranking company official..

Is it better to be a shareholder or a director?

The role of a director is usually much more hands-on, and involved in the day-to-day running of the business. Company directors also have far more responsibilities to the business than shareholders do. It’s their job to ensure the company is managed effectively, complies with the law and benefits its shareholders.

Can a director remove a company secretary?

1 Removal by the director(s) The director(s) of the company may resolve to remove the company secretary. The resolution of the director(s) removing the company secretary must be signed and placed in the company’s minute books within 1 month after the resolution is passed.

What is the benefit of being a director?

The most obvious and significant benefit of being a sole director and shareholder of a limited company is that you alone will make all decisions. You don’t need to consult other people, seek approval from other directors, or compromise the way you want to run your business. You have complete autonomy.

What is the salary of CS per month?

Pay Scale/Salary of Company Secretary (CS)Job ProfileStarting Salary per annum (in INR)Senior Level Salary per annum (In INR)Company SecretaryRs. 3,00,000Rs. 9,00,000 – 12,00,000Legal AdvisorRs. 3,00,000Rs. 10,00,000Principal SecretaryRs. 3,00,000Rs. 9,00,000 – 12,00,000

Who is more powerful CEO or MD?

MD is the head of management (either shares the same importance of CEO / COO or is superior to them). … Managing Director is responsible for the day-to-day business of a company. On the other hand, a Chief Executive Officer has no responsibility for the daily affairs of a firm.

What is the salary of CS fresher?

While the average salary of fresher may start at somewhere around Rs 4 lakh per annum, it can go up to Rs 9 lakh with an experience ranging between five and nine years and touch Rs 20 lakh per annum for those with an experience of 20 years and over.

Does a company secretary have to sign accounts?

The financial statements should also be signed by Managing Director, CEO, CFO, and the Company Secretary wherever such functionaries are mandated, whether or not they are present at the Board meeting at which the accounts are adopted.

Can a shareholder be a CEO?

But CEOs also work for someone else — they are accountable to the board of directors of their company and, in publicly traded companies, their shareholders. … But these job titles are not mutually exclusive — CEOs can be owners and owners can be CEOs. And CEOs are not always accountable to a board of directors.

Can directors remove shareholders?

According to Lankford Law Firm, although it may be somewhat difficult, removing a majority shareholder is possible – for instance, if they have violated the original terms of the shareholders’ agreement of the company’s bylaws.

Can a company secretary open a bank account?

When opening a business bank account the secretary will need to sign the mandate which dictates the accounts authorised signatories. The company secretary has no rights specified by the Companies Act.

Who comes after managing director?

A CEO comes after the board of directors in the organizational structure. A Managing Director comes under the authority of the CEO. A Chief Executive Officer does not have any responsibility for the day to day affairs of the organization.

Can you have 2 company secretaries?

There is no longer a requirement to have a company secretary however you may add one if you wish. You may appoint one or more secretaries for your company. … It is no longer essential to nominate a company secretary however if you do then you will need to provide the secretary’s full name and service address.

Does a company secretary count as a director?

Director and secretary – There is no prohibition in the Act on a person acting both as director and secretary of a company. … Company secretaries fall under the definition of ‘officer’ of a corporation (s 9 of the Act), so they have many of the same duties and obligations as directors.

What is the position of company secretary?

Principally, the company secretary ensures the company complies with company law, maintains certain statutory registers and makes the necessary filings with the Registrar of Companies such as annual returns, financial statements and certain forms with respect to changes to share capital etc.

Is Secretary higher than director?

Company Officers Directors are appointed by members (shareholders and guarantors) to run and manage the day-to-day operations of the business. Secretaries are optional for private companies, but not public companies. They are usually appointed to assist directors with important administrative tasks.

Can you have 2 Managing Directors?

It’s a lot of work, so sometimes two or more directors share the responsibility. Typically, one director takes overall responsibility for a company, becoming the managing director (or MD). Normally there is only one MD at a time.

Is there demand for company secretary?

With the Increasing Number of Companies Coming in India and also Introduction of new Companies Act Which Requires Every company will have to get annual returns signed by a company secretary,will Definitely Increase Demand of CS Profession in Coming days.