The corporate secretary plays a vital role in any legal entity, and the importance of that role has only expanded with time. A corporate secretary’s primary responsibility is to ensure the integrity of the organizational governance framework.
According to Governance Professionals of Canada, the corporate secretary maintains compliance with statutory and regulatory requirements. They also administer efficiencies throughout the company under the direction and decision-making of the Board of Directors.
Entity management systems are one of the best ways that corporate secretaries can introduce efficiency into their own workflows. Administrating efficiencies for the entire organization also means incorporating solutions that reduce the amount of time and resources necessary to complete all the clerical duties of a corporate secretary.
Let’s break down some of the ways corporate secretaries love entity management systems and the net benefits in their day to day workflows.
Modernized minute book management
Among the most important duties of a corporate secretary are the facilitation of board and committee meetings and the taking of meeting minutes for official record. Corporate secretaries are responsible for minute book management for business entities and the subsidiaries that operate under the corporate umbrella.
Using entity management systems, the minute book management process is modernized with digital software. Corporate secretaries can eliminate the outdated process of making notes on paper files that must be sorted, tagged, and organized for official record keeping.
The entity management system is an intuitive platform that organizes uploaded minute book data into structured PDF-style documents. The minute books can be edited and customized directly within the platform, creating one centralized hub for corporate secretaries to host all minute book records. It’s a faster, more streamlined workflow that improves efficiencies for all important business meetings.
Compliance with federal and provincial governance laws
All entities must maintain compliance with federal and provincial governance laws. The consequences of failing to comply with those laws include stiff financial penalties for the business, and there’s always the possibility of criminal charges against executives and directors at the top of the organizational hierarchy.
Entity management systems help corporate secretaries maintain compliance in an efficient manner. The platform includes an automated compliance module that monitors organizational charts, calendars, workflows, and other templates. The module looks for any errors, statutory non-compliance, and date-based compliance tasks that may inhibit compliance.
Using the compliance module, corporate secretaries can manage their own schedules and the schedules of all signatory managers to remain on track with important deadlines in the compliance process. It reduces stress and confusion while helping the organization work towards the ultimate goal of corporate compliance and responsible governance.
Managing share transactions amongst key stakeholders
Every corporation has shareholders, and each of those shareholders has rights and responsibilities. Each stakeholder owns a percentage of company stock, and they have the right to acquire, sell, or transfer shares at their own discretion.
Each share transaction must be properly documented as part of the mandate for corporate compliance. Corporate secretaries typically manage all share transactions, which include everything from issuing new shares to arranging dividend payments and observing all other legal requirements.
Entity management systems help corporate secretaries automate the share transaction reporting process. The platform includes shareholder ledger templates that can be populated with records of all share transactions. Simply select the data management fields and insert the shareholder transaction information. The process is quick, easy, and painless for corporate secretaries, saving invaluable working time and maintaining strict compliance protocols.
Enhanced entity management security measures
Data privacy and security are paramount when it comes to maintaining compliance and responsible governance. Corporate secretaries are directly responsible for managing sensitive corporate data as well as the personal information of executives, directors, and shareholders affiliated with the legal entity.
Entity management systems offer advanced security protocols that protect all sensitive corporate data. The platform includes biometric and hardware key authentication solutions that restrict access to corporate records. Only those individuals to whom the corporate secretary grants official permission to access those records can view the data.
Privacy protection protocols prevent unauthorized leaks of sensitive data that risk compromising the integrity of the organization. Entity management systems are the best way to enforce those privacy protection measures and ensure the organization remains in compliance with the laws.
Flexible options to run executive and shareholder meetings
In the post-COVID-19 era, employees and executives of business entities expect flexible work options. Gone are the days when people were forced to be in the office every day of the week. Now, most entities have adopted hybrid work models that enable remote work for at least a few days of the work week.
Under these flexible work structures, corporate secretaries often struggle to arrange board, committee, or shareholder meetings with all key stakeholders. Instead of shuffling through dozens of executives’ calendars to coordinate available time for meetings, entity management systems provide corporate secretaries with greater flexibility.
Since entity management systems are cloud-based platforms, all minute book records can be accessed from any location. Once the corporate secretary grants access to key stakeholders, they can all view the data from the convenience of their own homes or any remote work environment. This enables important meetings to be conducted with less administrative hassle.