Justify the following statement:

The Secretary has to correspond with Directors on important occasions.

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1 Answers

  • The company secretary is an executive officer of a joint-stock company.
  • The decisions taken by the board of directors are implemented by the secretary.
  • The secretary acts as a link between the directors.
  • The secretary is said to be the ears, eyes, hands, and mouthpiece of the Board.
  • So under the following circumstances, the secretary writes letters to Directors:
  • Sending Notice and Agenda of the routine Board meeting.
  • Requesting directors to disclose their interest in a particular contract.
  • Forwarding the minutes of the meeting to the directors, who were absent for the meeting.
  • Intimating the director, the provisions regarding absenteeism at consecutive board meetings.

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