The company secretary’s role in CG: private and public owned south African companies

Abstract

This study investigates the role of the company secretary in ensuring and promoting proper Corporate Governance (CG) in public and private owned South African companies, so as to educate companies on their significance in reducing corporate scandals. The study followed a mixed research paradigm in which qualitative and quantitative methods of data collection were used. Fifty questionnaires were sent to company secretaries of different business sectors giving a response rate of 78% with four of the participants telephonically interviewed to gather qualitative data. The study confirmed that the company secretary still plays a significant role in promoting CG by giving support and advising the board and its directors on CG matters. The results further show that some company secretaries are involved in director selection, performance evaluation and implement induction, training and/or professional development to strengthen the company’s governance practices. Through the use of the Companies Act and the Kings report the company secretary ensures directors are kept abreast of relevant legislative and regulatory developments. It was observed that the company secretary ensures good information flow between the board, directors and stakeholders and keeps record of all conflicts of interest. Though the company secretary is appointed by the board they can whistle blow any misconduct under the protection of the Protected Disclosure Act, thus ensuring effectiveness of their role. Despite the fact that some of the company secretaries are facing challenges due to the ever evolving and increasing complexity of their roles, there has been evolution with regards to legislation, greater transparency, better governance and improved investor expectation. This study enriches company secretaries with knowledge of their expected role in CG.

Corporate Secretary Professional Expertise and Annual Report Readability

“…McNulty & Stewart (2015) found that the corporate secretary can link executive and nonexecutive directors to develop corporate governance and the effectiveness of their roles. Sigauke et al (2015) later confirmed that the corporate secretary plays a significant role in improving corporate governance practices and providing input to the board of directors and commissioners. Peng et al (2019) found that companies that provide high compensation to the corporate secretary will have good disclosure quality.…”

Choosing Secretary: Alasan, Keuntungan, Tantangan dan Prospek menjadi Sekretaris

“…Beberapa studi menemukan bahwa sekretaris perusahaan sedang menghadapi tantangan karena perkembangan yang pesat dari profesi mereka sehingga meningkat pula kompleksitas peran mereka (Sigauke et al, 2015). Serupa dengan itu, sebuah studi eksploratori menunjukkan bahwa sekretaris perusahaan sedang mengalami ekstensi tugas dan transisi dari perencana menjadi penasihat strategis, yang membutuhkan kemampuan profesional dan keterampilan kecerdasan demonstratis, komunikasi dan kepercayaan diri yang sangat penting dalam mempertahankan fungsi dan kebebasan dari pimpinan perusahaan (Mishra, 2020).…”