Company secretaries and general counsels both provide legal expertise to enterprises but serve different core purposes. Understanding the key differences between corporate secretarial services and general counsel roles is important for effectively leveraging their complementary value:
Core Responsibilities
The primary role of corporate secretarial services is advising the board on compliance, governance practices, and stakeholder communications. General counsels manage the legal affairs and agreements like contracts, disputes, and lawsuits for the company.
Key Duties
Corporate secretarial services handle filings, company records, board meetings, and compliance requirements. General counsel duties include drafting agreements, overseeing litigation, managing outside counsel, and tracking legal risks.
Scope
While corporate secretarial services focus on compliance and governance, general counsels handle diverse legal matters spanning operations, transactions, disputes, intellectual property, labor laws, and regulatory issues.
Reporting
Company secretaries report to the Board and take directions from the Chairperson, whereas general counsels report to the executive leadership like the CEO or COO.
Expertise
Corporate secretarial services require specialized expertise in company law, securities norms, and secretarial practices. General counsels need broad legal knowledge across various laws impacting businesses.
Risk Management
Corporate secretarial services mitigate statutory compliance risks and governance risks. General counsels assess and manage legal risks across the business.
Background
The role of company secretary necessitates qualifications like CS, LLB, and ICSI membership. General counsels come from diverse legal backgrounds as LLB or LLM graduates.
Proactivity
Corporate secretarial services play a proactive role in monitoring compliance and advising the board. General counsels provide legal defense and advice on a need basis rather than being proactive.
Stakeholders
Company secretaries engage frequently with shareholders, regulators, and auditors. General counsels primarily liaise with external law firms, courts, and legal authorities.
Strategic Impact
Robust company secretarial services strengthen stakeholder trust, reputation, and governance quality. Prudent general counsels help safeguard the company from legal disputes and penalties.
While overlaps may exist occasionally, corporate secretarial services and general counsels make distinct governance and legal contributions respectively. Companies should leverage the unique expertise of both roles for well-rounded risk management and legal support. The complementary value enables prudent decision-making.
