In today’s cut-throat business environment, no business venture can protract only on the basis of its Product base, Brand Value or Marketing Strategy. It also has to ensure that it is stands out as an entity which is ethical and value adder in its dealing and the eco system where it operates. If India has to accelerate and multiply its Economic Development initiatives, then the same can be done by way of increased investment. For last decade and so, though the World is progressing like never before yet the Indian Economy at large continues to grapple with an environment of change and uncertainty. The trend towards increased uncertainty blend with risks brings even greater focus onto the domain of Compliance, Ethics and Governance.
Make in India is an initiative introduced by the Government of India under the tagline of “Whatever you Make; Make in India”. The major objective behind the said initiative is to focus on 25 sectors of the economy for job creation and skill enhancement. The initiative also hopes to attract capital and technological investment in India. “Zero Defect Zero Effect” is a slogan coined which signifies production mechanisms. It is essential to take note that Investment means an increase in capital spending, and in economics it does not mean saving money in a bank. Investment is a component of Aggregate Demand. Therefore, if there is an increase in investment it will help to boost aggregate demand and therefore economic growth. If there is spare capacity then a rise in aggregate demand will enhance economic growth.
The performance and effectiveness of all major Economies are directly linked with the stability factor on one hand and security on the other. How does a financial transaction, say the disbursement of a loan, differ from a standard economic transaction, like purchasing a good with cash? The borrower promises to make a payment at some time in the future. The value of the transaction to the lender thus depends critically on the quality of the promise, which is in turn dependent on a number of characteristics, such as the reputation of the borrower, the ability of the lender to monitor and control the borrower and the consequences of default of the borrower. This simple observation implies that in order to attract investments there should be reputation on one side i.e Mix of Governance and Ethics and the Government Policy i.e Compliance Mechanism on the another side.
CS plays a pivotal role in maintaining the much required balance between Compliance and Ethics. He is not only required to have the Knowledge of the business, but also the skill set to ensure the Compliance with applicable laws along with being the face Visibility of the Business in interaction with the various stakeholders. Besides this, he his involved at every stage of Corporate existence i.e. from Birth (Incorporation of the entity) to, Marriage (Corporate Structuring) to death (Winding up & Liquidation).With the advent of the Companies Act 2013, CS are now designated as Key Managerial Personnel. Despite the name, the role is not a clerical or secretarial one in the usual sense but more of Managerial, Governance, Strategic and Trusteeship.
‘‘The company secretary has a key role to play in ensuring that board procedures are both followed and regularly reviewed. The chairman and the board will look to the company secretary for guidance on what their responsibilities are under the rules and regulations to which they are subject and on how these responsibilities should be discharged. All directors should have access to the advice and services of the company secretary and should recognise that the chairman is entitled to strong support from the company secretary in ensuring the effective functioning of the board.’’
The role of CS enables them to be involved in any aspect of the operations of a company. CS are the primary source of advice on the conduct of business and this can span from legal compliance and accounting advice to the development of strategy and corporate planning. Providing advice on corporate governance issues is an increasingly important role for CS. Make in India concept is a revolutionized concept which is providing the much required vigour to the economy and sentiments associated with positives.. In today’s highly competitive and cost conscious business environment Compliance Governance and Ethics are pivotal to survive. The Company Secretaries bring with them unique blend of Knowledge, Skills & Visibility on the table without which the business world would not be sustainable. The Company Secretaries are one of its kind professionals who have a unique deliverable towards various stakeholders on equal terms. The Role and Responsibilities of the Company Secretaries have been evolving and are required to be Futuristic, Strategist and Value multiplier. In order to build Nation, Economy has to be accelerated and this can be done by way of Capital Infusion & Capital Multiplication for which the Business Community should have faith in them. The Company Secretaries provide much required confidence by way of Ethics and Governance on one hand and Strategies and Value on the other to drive the process of Nation Building.
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