Is it time to outsource your co-sec duties?
Outsourcing your co-sec duties is a growing trend in the corporate world as companies look for ways to streamline operations and reduce costs.
03rd May 2023
Andrew Murdoch
Managing Director
Outsourcing is a growing trend in the corporate world as companies look for ways to streamline operations and reduce costs. But is outsourcing the right choice for your company’s corporate secretarial duties?
Whether a small start-up or a large multinational corporation, this guide will provide valuable insights and practical advice to help you navigate the outsourcing landscape and make informed decisions about your company’s co-sec responsibilities. Whether you outsource or keep these functions in-house, we aim to help you maximise the benefits and minimise the risks associated with your co-sec strategy.
Contents
What is a co-sec?
A Co Sec, or ‘company secretarial’, is responsible for ensuring that the company complies with all relevant laws and regulations and maintaining accurate and up-to-date records of the company’s legal and financial affairs. They typically oversee high-level financial and legal matters ensuring the company is managed appropriately and according to the law. Commonly, Co-Sec duties are held by senior members of a company.
What does outsourcing co-sec duties involve?
With the increasing complexity of the duties of a Co Sec, organisations can benefit from having an outsourced specialist secretary available. They can either assume the statutory role or provide advice or assistance when needed.
Outsourcing the duties of a Co Sec provides companies with a low-cost alternative, especially where the company secretarial function does not require a full-time permanent employee.
Not only does outsourcing provide a low-cost substitute, but it can also provide relief during busy times. This may include during half-yearly or yearend financial reporting periods, whilst preparing the Annual Report, when an annual or other general meeting is to be held, or during a capital raising or acquisition. In addition, they are helpful when the appointed Secretary is on leave or away from the office for other reasons.
Should I outsource my co-sec duties?
The decision to outsource company secretarial duties will depend on several factors, including the size and complexity of your company, the level of in-house expertise, and the cost involved.
Here are some pros and cons of outsourcing company secretarial duties:
Pros:
- Expertise: Outsourcing to a professional firm provides access to a team of experts with experience and knowledge in company secretarial services.
- Time-saving: Outsourcing can save company management time to focus on other essential business activities.
- Compliance: Professional firms have the resources to ensure that your company fully complies with all relevant laws and regulations.
- Cost-effective: Outsourcing may be more cost-effective than hiring an in-house secretary, especially for small companies.
Cons:
- Lack of control: Outsourcing can result in losing control over certain aspects of your company’s operations.
- Communication: Communication with an external provider may be less direct, leading to delays or misunderstandings.
- Cost: Outsourcing may be more expensive than hiring an in-house company secretary, especially for larger companies.
Ultimately, the decision to outsource company secretarial duties will depend on the specific needs and circumstances of your company. It may be beneficial to consider both the pros and cons and seek professional advice before deciding.
