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CSEET · Business Laws and Management · Management Knowledge for Company Secretaries

Which of the following best describes the role of a company secretary as a 'link' within the company's management?

The company secretary acts as a link by serving as the channel of communication between the board, shareholders, regulators and other stakeholders. Auditing, share price determination and shop-floor supervision fall outside this role, which is about coordinating information and compliance among the company's various parties.

  1. AServing as the channel of communication between the board, shareholders, regulators and other stakeholdersCorrect
  2. BAuditing the financial statements independently of the board
  3. CFixing the market price of the company's shares
  4. DDirectly supervising the production workers on the shop floor

Explanation

A company secretary acts as a communication link between the board of directors, shareholders, government authorities, regulators and other stakeholders. Auditing is done by the auditor, share prices are set by the market, and shop-floor supervision is an operational production function.

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