1. Introduction : Company Secretary is a responsible officer who performes an important role in the company. He has to look after that vaxious work is being done in accordance with the provisions of companies act. If he proved to be irresponsible towards his work then he is liable to pay fine or has to bear punishment. He has to do vigilance over various work over and above his responsibility.
2. Liabilities of Company Secretary : Various authority is being given to Company Secretary from the board of directors. If in this work if he proved to be irresponsible then th following liabilities may arise:
(1) Liabilities regarding violation of law : The Company Secretary is responsible if he violates the provision of Company act.
(2) Regarding not submitting the documents to registrar : The Company secretary is responsible if he does not submit necessary Thcuments to the registrar of Companies in specific time.
(3) Liabilities regarding secret commission or profit : Company secretary is aware of various important information. If he use this information for his ow personal purpose or for obtaining secret profit he is personally responsible. He is responsible if he misuses his power or takes commission secretly.
(4) Liabilities regarding act beyond the powers delegated : The secretary is responsible for any act beyond the powers delegated misappropriaUon of fund, fraud. For this purpose he is liable to punishment with fine and/or imprisonment.
(5) Liabilities regarding negligence of duties : The Secretary is responsible for any loss that occurs by the company due to willful negligence of duties. It is the responsibility of the secretary to pay for loss.
(6) Liabilities regarding minutes of the meeting : The Secretary is responsible ‘for not writing necessary recommendations of the meeting or minutes of the meeting.
(7) Liabilities regarding annual accounts : If the Secretary does not present the annual account in company’s annual general meeting then he is responsible for this fault.
(8) Unauthorized changes in documents : The Secretary is responsible for unauthorized changes made by him in documents.
(9) Liabilities regarding breach of contracts : Secretary has to form important contract with the various parties. If the secretary himself violates, do fraud, betrays the contract he will be responsible for the same.