CSEET · Business Laws and Management · Management Knowledge for Company Secretaries
The board of Kaveri Textiles Ltd. is about to approve a major related-party contract. The company secretary notices that a required prior approval step under law has been skipped and informs the board, recommending that the step be completed first. Which role is the company secretary mainly performing?
The company secretary is acting as a compliance officer and legal adviser to the board. By identifying the skipped statutory approval and recommending that it be completed before the contract is approved, the secretary ensures the decision conforms to law, which is a core compliance and advisory function.
- AActing as a profit-maximising marketing manager
- BActing as a compliance officer and legal adviser to the boardCorrect
- CActing as an internal cost accountant
- DActing as a trade union representative
Explanation
Spotting a missed statutory approval and advising the board to complete it is a compliance and advisory function. Marketing, costing and union representation have no connection with ensuring legal compliance of board decisions.
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