The Privatisation and Corporatisation Board (PCB) has published a new policy on the appointment of company secretaries in state-owned enterprises, outlining key responsibilities and procedures.
The policy determines the duties and responsibilities of company secretaries of SOEs, as well as the processes for their recruitment, resignation, and dismissal. According to PCB, the framework was developed to ensure that the secretaries of government-owned companies are suitably qualified, that the responsibilities of the role are standardised across SOEs, and that the post is given the dignity and recognition it deserves. It also aims to ensure transparency in matters relating to company secretaries, strengthen their work as well as the management of the company's board.
Under the policy, each SOE will establish a dedicated company secretary position. The policy also specifies educational and professional experience requirements for the role.
Company secretaries will be appointed by the respective Board of Directors in accordance with the Companies Act, Articles of Association and Memorandum of Association. Newly appointed secretaries must also complete the Company Secretary Training Programme designed by the Capital Market Development Authority within a maximum of six months of appointment.
The Board of Directors are required to conduct a performance appraisal of the secretary at least once a year, based on a policy established by the board.
The responsibilities of the company secretaries include ensuring that the company is operating in accordance with the policies and directives issued by the PCB as well as other relevant regulators. Additional responsibilities include providing advice and guidance to board members on regulatory compliance. The secretaries are also responsible for providing necessary support to the regulators and monitoring agencies overseeing the company’s activities.