Justify the following statement :

It is compulsory to appoint a secretary in Joint Stock Company.

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1 Answers

  • Joint Stock Company works on a large scale. 
  • Hence, every company with paid-up capital of ₹ 5 crores or more must appoint a full-time secretary. 
  • A company secretary acts as a line of communications between the Board and the staff. 
  • He acts as the mouthpiece of the Board, as the Directors act only through the secretary. 
  • Every grievance of the staff is communicated to the Directors through the secretary. 
  • Thus, It is compulsory to appoint a secretary in Joint Stock Company.

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