Interview/ Dhananjay Shukla, president, Institute of Company Secretaries of India
Q/ How important is the role of a Company Secretary?
A/ As businesses grapple with increasingly complex regulatory frameworks and a heightened focus on corporate governance, the demand for qualified Company Secretaries is surging across various industries. While prioritising strong governance frameworks, businesses now are integrating environmental, social and governance principles into strategic decision-making. As enablers, Company Secretaries align the business’s long-term goals with best practices and guide the board through governance challenges.
Q/ What are the career prospects?
A/ Qualified Company Secretaries can either choose to be in employment or can start their own practice. In both roles, Company Secretaries strengthen the business environment and corporate administration of the country. Boards look upon Company Secretaries as professionals recognised and entrusted by investors and regulators. Besides auditing and certifying documents under various legislations, including the non-financial metrics of diversity and sustainability, Company Secretaries are recognised as arbitrators under the Arbitration and Conciliation Act and can appear as authorised representatives before various tribunals like the National Company Law Tribunal.
The recent transcendence of Company Secretaries in areas like ESG, insolvency, valuation, social audit and alternate dispute resolution has further enhanced their influence worldwide. Today, they are foraying into capital markets, sustainability reporting, cyber security compliance, mergers and acquisition and other financial services and are seen as strategic partners.
Q/ How has the role of a Company Secretary changed over the years in India and how does it compare with the west?
A/ From a compliance-focused position to a strategic advisory role, there has been a shift in the responsibility of a Company Secretary. Their role has been given a special status in India under the Companies Act 2013. They are now conferred with the title of key managerial personnel in an organisation, that brackets them along with the MD, CEO, whole-time director(s) and CFO.
With the University Grants Commission recognising Company Secretary qualification as equivalent to a postgraduate degree, the scope of the profession has also increased academically. Members of the institute now also have an opportunity to pursue PhDs in commerce and allied disciplines.
Q/ Could you talk about the course content and the path to becoming a Company Secretary?
A/ Company Secretary course is a distance learning programme. Students from any stream can enrol. To register, aspirants need to qualify the Company Secretary Executive Entrance Test (CSEET), a computer-based test held four times a year. It examines a student’s business communication, legal aptitude and logical reasoning, understanding of the economic and business environment and knowledge of current affairs. On clearing CSEET, students can register in the CS executive programme. Graduates or postgraduates from a recognised university are exempted from CSEET and can register directly in the CS executive programme.