Corporate Secretary in Indonesia: Eligibility & Responsibilities

Hiring a corporate secretary is one of the things businesses do after incorporation. As a fundamental role in a company, a corporate secretary does more than just filing paperwork or performing basic duties such as answering phone calls, and other administrative tasks.

A company secretary also shares legal advice and duties with the company director. Aside from legal activities, the appointed company secretary is tasked to review the board’s procedures and corporate governance matters regularly. This is governed by the Indonesia Financial Services Authority Regulation No. 35/POJK.04/2014 of 8 December 2014 on Corporate Secretary of Issuers or Public Companies.

With such an important role being passed on to a company secretary, there are some crucial factors to consider before deciding on one!

Qualities of a Company Secretary

Beyond the legal requirements that must be met or risk getting penalised by the authorities, there are also qualities that one should possess to fulfil the responsibilities of a company secretary:

• Knowledgeable in company law and governance
• Adept at processing and vetting high volumes of related information
• Good eye for detail, detecting possible discrepancies in documents
• Able to work well and coordinate with people at all levels
• Strong written communication skills
• Trustworthy and responsible

What are the Responsibilities of a Company Secretary in Indonesia?

Apart from being an admin assistant, the role of a company secretary has since evolved into an important character in every company. Here are some of the tasks you can expect from a company secretary in Indonesia:

• Acts as an officer for the company and an advisor to the Board of Directors, providing operational advice
• Ensuring the various compliances with the statutory Requirements and Advisory
• Preparation of board meetings and as the liaison between shareholders and the company
• Filing of annual returns and full accounts promptly
• Ensuring the safety of the company seal, preventing unauthorised usage
• Primary point of contact for shareholders regarding corporate governance matters

Factors to consider when hiring a Company Secretary

Here are some tips that you should consider before hiring a company secretary:

1. Clear understanding of the Indonesia company laws

As the company secretary is the legal assistant of the company, it only makes sense to appoint someone familiar with the laws and regulations of Indonesia. An incompetent secretary can risk legal breaches, penalties, or unfavourable court cases for your company.

A company secretary must timely submit audited reports; failure results in fines, which is not ideal.

2. Proficient communication skills

A company secretary acts and represents the company while conversing with external stakeholders such as shareholders and directors. They must facilitate general meetings, annual general meetings, and meetings with company directors.

Accompanied by their knowledge of legal matters, they are not doubly able to provide professional and unbiased advice to the audience.

3. Strong administrative skills

Beyond being the company’s ‘right-handed man’, company secretaries in Indonesia should also be able to handle other financial tasks such as filing tax returns as well as annual reports. They should also be able to pick up calls and answer any choirs a customer may have.

While these financial tasks can be outsourced as accounting and audit services, the company secretary should be able to understand, check, and liaise with the firms directly.

4. Efficient financial skills

A company secretary must handle financial statements easily, requiring above-average financial knowledge. This will lower the risks of misstatements made by inexperienced secretaries, causing the company to make a loss because of a piece of simple information the inexperienced secretary has missed out on.

How Vital Is This Role?

Only a qualified person or secretarial services are required for the crucial function of company secretary. This is especially true because the responsibilities and roles of this position go beyond simple administrative tasks and include responsibilities that are critical to the company’s survival.

The company secretary has a critical responsibility in ensuring that statutory compliance matters under the Companies Act are enhanced and enforced, as well as ensuring that the board of directors practices good corporate governance. This isn’t always straightforward, especially if the company secretary’s advice runs counter to the board of directors’ wishes.

Are Companies in Indonesia Required to Appoint a Corporate Secretary

While it is highly encouraged for all companies to hire a company secretary in Indonesia, it is not a requirement to appoint one unless you own a public company (Local PT).

Moreover, the roles and responsibilities of a company secretary go above and beyond just the administrative tasks mentioned above. Hence, engaging corporate secretarial services will allow business owners to eliminate these tasks relating to corporate governance and focus on growing the business.

Here at Paul Hype Page, we pride ourselves as one of the best corporate secretarial firms in Indonesia. As your corporate secretary, we remind you of key filing dates and ensure your company remains in good order.