Every year, Hong Kong administration takes a flashback to establish areas that need improvement for its business economy to thrive.
To ensure that businesses are compliant and everything is done in line with the set regulations, the administration needs to get the right records, reports, and coordination. This role is bestowed to one entity, the Hong Kong company secretary. Here are the five most important things to know about company secretary in Hong Kong.
The position is statutory for all companies
The position of the company secretary is prescribed in the Companies Ordinance. Indeed, the company secretary is attached to the company registration. This implies that your company can only get registered after the office of the secretary has been created.
The board of the company has to sit and agree who to employ as the secretary to operate in line with the Companies Ordinance before registration documents are submitted to the Companies Registry.
The secretary is the main bridge between the business and government
One question that often crosses the minds of investors is why the office of the Hong Kong company secretary is made mandatory. Why not push the mandate of the secretary to the CEO office? The Hong Kong administration wanted to ensure that every business puts the best effort in driving growth and edging closer to success.
To succeed in this, the statutory roles and administrative tasks were separated. Therefore, as the directors focus on winning a bigger market, enhancing the business product, and growing steadily, the company secretary focuses on business compliance.
The company secretary can be a registered entity
The company secretary does not have to be an individual. A registered firm that specializes in corporate services Hong Kong can also serve as a company secretary. Using a registered entity is considered more beneficial because of the following reasons;
- Registered entities such as agencies can help with multiple tasks. For example, most of them assist enterprises with company incorporation Hong Kong and establishment in their early years.
- The agencies can use their offices as the company’s address. This implies that the investor will be able to cut costs associated with renting and maintaining a company office.
- Many agencies are very helpful in assisting companies when opening bank accounts.
The terms and conditions for the company secretary are determined by the board
To hire a company secretary, the Companies Ordinance leaves the mandate to the board. This means that you can draw the duties of the secretary in line with the Companies Ordinance but steer them to more engaging duties.
For example, you can rope the secretary to decision and strategy formulation arms of the company. This will ensure that his expert input is factored before decisions are made.
The main roles of the Hong Kong company secretary
The Hong Kong administration targeted ensuring that when policies are passed, they can be communicated and acted upon promptly courtesy of company secretary. Here are the main roles of the secretary.
- Legal assistance to help the company operate in line with Hong Kong laws.
- The role of preparing and filling corporate resolutions.
- Keeping the legal documents and the company seal.
- Advising the management on bankruptcy and deregistration when such need arises.
- Submitting annual returns.
- Participating in board meetings and taking minutes.