In Malaysia, appointing a qualified company secretary, who is a member of a professional body, of a company is not just an option – it’s a legal requirement to meet statutory requirements. But with so many qualified professionals out there, how do you ensure you choose the right one for your business? A company secretary, as an important member of the company’s management, plays an important role in ensuring your company operates compliantly and efficiently. Making the right choice can save you time, money, and a whole lot of stress down the line.

This blog post will guide you through eight key questions to ask before appointing a company secretary in Malaysia. By considering these factors, you can ensure you find a qualified and experienced professional who aligns perfectly with your company’s needs.

Quick Overview: 8 Questions to Ask Your Company Secretary in Malaysia

Appointing a qualified company secretary Malaysia is a legal requirement, but finding the right one can greatly impact your business. A good company secretary ensures compliance and smooth operations, helping you avoid legal issues and financial penalties.

In this blog, we’ll explore 8 key questions to ask when hiring a company secretary:

1. What is your experience in Malaysian corporate compliance, including the Companies Act 2016?
2. How do you stay updated on regulatory changes?
3. Can you elaborate on your legal responsibilities?
4. How do you ensure compliance with deadlines?
5. What is your experience with drafting legal documents?
6. How do you handle corporate governance matters?
7. Can you provide examples of problem-solving in past roles?
8. What is your approach to client relations?

These questions will help you assess their qualifications, experience, and approach, ensuring they align with your business needs and values. Whether it’s understanding their expertise in compliance with the Companies Act 2016 or their strategies for managing deadlines and staying updated on regulations, asking the right questions will guide you in making an informed choice.

Understanding the Role of a Company Secretary Malaysia

Before diving into the interview process, let’s establish a clear understanding of a company secretary’s role and responsibilities. A company secretary acts as a guardian of good corporate governance. They oversee a wide range of essential tasks, including:

• Maintaining statutory registers, such as the register of members and directors.
• Filing annual returns with the Companies Commission of Malaysia (SSM) by the deadline – missing this deadline can lead to hefty penalties.
• Convening and minuting board and shareholder meetings according to the Companies Act 2016.
• Liaising with regulatory authorities on your company’s behalf.
• Keeping the company’s legal documents safe and secure.

In short, a company secretary Malaysia ensures your company adheres to all relevant legal and regulatory requirements. This not only protects your business but also fosters trust and confidence with investors and stakeholders.

1. What is Your Experience in Malaysian Corporate Compliance Including Companies Act 2016?

When interviewing potential candidates, it is crucial to gauge their familiarity with Malaysian corporate compliance. A well-versed company secretary should possess a robust understanding of the Companies Act 2016 and other relevant regulations.

Key Points to Consider:

• Past Experience: Inquire about their previous roles and the types of companies they have worked with. A seasoned professional should be able to provide examples of how they ensured compliance and managed statutory obligations.
• Filing and Reporting: Ask about their experience in filing annual returns, maintaining statutory registers, and preparing minutes for board meetings.
• Industry-Specific Knowledge: Depending on your industry, it may be beneficial to find someone with specialised knowledge in areas like data protection or financial regulations.

Sample Question:

Can you describe your previous experience in managing compliance for Malaysian companies?

2. How Do You Stay Updated on Regulatory Changes?

The legal landscape is constantly evolving, and it’s important for a company secretary Malaysia to stay abreast of changes in laws and regulations. This ongoing education ensures that your company remains compliant and avoids potential legal pitfalls.

Key Points to Consider:

• Professional Development: Inquire about their commitment to continuous learning. Do they attend seminars, webinars, or workshops?
• Networking: A good company secretary should be part of professional networks that provide updates and insights into regulatory changes.
• Resources: Ask what resources they utilise to stay informed, such as legal newsletters, online forums, or industry publications.

Sample Question:

What strategies do you employ to remain informed about changes in company law and regulations?

3. Can You Elaborate on Your Legal Responsibilities?

Understanding the legal obligations associated with the role of a company secretary Malaysia is important. This individual must not only be knowledgeable about compliance but also understand the ramifications of negligence or fraud.

Key Points to Consider:

• Corporate Secretary Duties and Liabilities: Discuss the legal responsibilities they hold, including maintaining accurate records and ensuring timely filings.
• Corporate Governance: Ask how they contribute to corporate governance and what measures they implement to uphold ethical standards.
• Risk Management: It’s essential that they can identify potential risks and take proactive measures to mitigate them.

Sample Question:

What do you perceive as your legal responsibilities as a company secretary in Malaysia?

4. How Do You Ensure Compliance with Deadlines?

Timeliness is a critical aspect of compliance. Failing to meet statutory deadlines can result in penalties and legal issues. A competent company secretary Malaysia should have a structured approach to managing deadlines.

Key Points to Consider:

• Compliance Calendar: Ask if they maintain a compliance calendar to track important dates and obligations.
• Reminders and Alerts: Inquire about how they communicate upcoming deadlines to ensure that all stakeholders are prepared.
• Audit Processes: Discuss their approach to conducting internal audits to identify any compliance gaps.

Sample Question:

Can you explain how you manage compliance deadlines and ensure timely submissions?

5. What Is Your Experience with Drafting Legal Documents?

A company secretary Malaysia is often responsible for preparing various legal documents, including resolutions, meeting minutes, and contracts. Their proficiency in drafting these documents is crucial for maintaining legal integrity.

Key Points to Consider:

• Types of Documents: Discuss the range of documents they have experience drafting and reviewing.
• Attention to Detail: Ask about their approach to ensuring accuracy and clarity in legal documents.
• Collaboration: Inquire about how they work with legal advisors or other departments to prepare necessary documentation.

Sample Question:

How comfortable are you with drafting and reviewing legal documents? Can you provide examples?

6. How Do You Handle Corporate Governance Matters?

Corporate governance is a critical aspect of any business, and the company secretary Malaysia plays a vital role in ensuring that governance practices are adhered to.

Key Points to Consider:

• Board Meetings: Discuss their experience in organizing and facilitating board meetings, including preparing agendas and documenting minutes.
• Stakeholder Communication: Inquire about how they manage communication between the board and shareholders.
• Policy Implementation: Ask about their role in developing and implementing governance policies within the organization.

Sample Question:

Can you describe your approach to managing corporate governance matters?

7. Can You Provide Examples of Problem-Solving in Past Roles?

Understanding how a potential company secretary has handled challenges in previous roles can provide insight into their problem-solving abilities and adaptability.

Key Points to Consider:

• Situational Examples: Encourage them to share specific instances where they identified and resolved compliance issues.
• Proactive Measures: Discuss how they implemented changes to prevent similar issues in the future.
• Collaboration: Inquire about their experience working with other departments to address challenges effectively.

Sample Question:

Can you share an example of a compliance issue you encountered and how you resolved it?

8. What Is Your Approach to Client Relations?

A successful company secretary must not only be competent in their duties but also excel in building strong relationships with clients and stakeholders.

Key Points to Consider:

• Communication Skills: Discuss their approach to communicating complex legal concepts in an understandable manner.
• Responsiveness: Inquire about their typical response times to client inquiries and how they prioritise tasks.
• Adaptability: Ask how they tailor their services to meet the unique needs of different clients.

Sample Question:

How do you approach client relations and ensure effective communication with stakeholders?

Bonus Questions to Ask

To further ensure that you are making the right decision when appointing a company secretary, here are some additional questions to consider:

Have You Completed a Company Secretary Course in Malaysia?

While qualifications are essential, completing a specific company secretary course in Malaysia can indicate a commitment to continuous learning and staying updated on best practices. Ask if they have undergone any specialized training that enhances their skills in managing company secretarial duties.

How Do You Ensure Compliance With the Annual Return Submission Deadline Malaysia?

Missing the annual return submission deadline can result in hefty fines and penalties for your company. Ask how they manage the annual return submission deadline Malaysia and what steps they take to ensure timely filing. A proactive approach to deadline management can help your company avoid unnecessary penalties.

Why Is It Important to Ask These Questions?

Asking the right questions before appointing a company secretary is important to ensure that you select a qualified professional who meets your business needs. A company secretary is responsible for ensuring compliance with statutory obligations, including the company’s annual return, and maintaining good governance practices. By thoroughly vetting candidates, you can prevent potential issues that could arise from appointing an inexperienced or unsuitable company secretary, who may not effectively manage communications with the registrar. The right company secretary will act as a strategic partner, guiding you through complex compliance requirements and helping your business grow in a structured and compliant manner.

Why Is It Important to Interview Before You Hire a Company Secretary?

Interviewing a company secretary gives you an opportunity to assess their expertise, experience, and approach to handling corporate compliance. It helps you understand their work ethic, communication style, and how well they fit into your company culture. A face-to-face or virtual interview allows you to discuss specific scenarios and gauge how well they would handle challenges pertinent to your business administration needs. This personal interaction is crucial in determining if the company secretary has the right skills, mindset, and understanding to effectively support your company’s needs.

Things to Keep in Mind When Choosing a Corporate Secretary Malaysia

Picking the right corporate secretary partner is a big decision that can greatly affect your company. When looking at potential providers, keep these key points in mind to make sure you choose the right one for a long-term partnership:

Qualifications and Expertise

Make sure the corporate secretary provider has a team of well-qualified professionals who are registered with the relevant authorities in Malaysia. Look for staff with proper certifications, industry experience, and a strong understanding of the local business environment.

Specialised in Startups and Mid-Sized Companies

If you’re a startup or mid-sized business, choose a provider with experience working with companies like yours. They should understand the specific challenges and needs of growing businesses.

Cultural and Value Alignment

A good corporate secretary should share your company’s values and vision. Check if their way of working, approach to client relationships, and commitment to transparency align with your organization’s culture and long-term goals.

Technology and Innovation

In today’s world, technology plays a big role in making corporate secretarial services more efficient and secure. Look for a provider that invests in modern technology and stays up to date with industry changes.

Clear Pricing and Services

It’s important to have a clear understanding of what services you’re getting and what they will cost. Ensure that the provider offers transparent pricing without hidden fees, and that their services are clearly outlined.

Proven Reputation and Client Feedback

Check the provider’s reputation by looking at reviews, client feedback, and any awards they’ve received. A good track record and positive references can help you feel confident in your decision.

Don’t forget, Grof offers a free consultation to help you explore your corporate secretary needs and guide you through the process of making the switch.

Signs You Might Need a New Corporate Secretary

Here are some warning signs that your current corporate secretary may not be the right fit anymore:

1. Missed Deadlines: Following the rules is important, and missing deadlines can lead to fines or damage your reputation. If your corporate secretary often misses filing deadlines, it’s a serious issue.
2. Poor Communication: Good communication is essential. If it’s hard to reach your secretary, they give unclear answers, or there are gaps in information, that’s a red flag.
3. Not Being Proactive: A good corporate secretary doesn’t just do the basics. They should be offering advice on rule changes or upcoming deadlines. If they don’t, they might not have your company’s best interests in mind.
4. Limited Knowledge: As your business grows, your needs change. If your corporate secretary doesn’t have the expertise to meet these new needs, it may be time to look for someone else.
5. High Costs, Low Value: If you’re paying a lot but feel like you’re getting poor service, it’s worth shopping around to see if you can get better value.

If you’re seeing several of these signs, it might be time to consider a new corporate secretary partner.

Thinking of switching to Grof for better service? Click here to make the switch: https://grof.co/my/switch-to-grof

Conclusion

Appointing a company secretary is an important decision for any Malaysian business. By asking the right questions and carefully considering the factors outlined above, you can ensure you find a qualified and experienced professional who aligns perfectly with your company’s needs.

Remember, a good company secretary is more than just a compliance officer – they are a trusted advisor and a valuable asset to your company’s long-term success. Finding the right company secretary doesn’t have to be a daunting task. Grof connects you with a network of pre-vetted professionals in Malaysia, ensuring you find a qualified candidate who meets your specific requirements.

Get started today and find the perfect fit for your business! Visit Grof today to learn more.