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ACCA Applied Skills · Corporate and Business Law (Global) · Other company officers

Under the usual company law position in many jurisdictions, who is generally responsible for appointing the company secretary of a private company, where one is required or chosen?

The directors normally appoint the company secretary, on terms they decide, and can also remove the secretary. The registrar merely records the appointment. The auditor and the bank have no power to appoint, so the board is the correct answer unless the articles provide differently.

  1. AThe directors, unless the articles say otherwiseCorrect
  2. BThe registrar of companies
  3. CThe company's bank
  4. DThe external auditor

Explanation

The secretary is appointed by the directors, who set the terms and can remove the secretary. The registrar only records the appointment, and neither the bank nor the auditor has a role in appointing.

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