By Caroline Scott, Marketing Manager, CGISA
The role of the company secretary has transformed significantly, evolving from a primarily administrative function to a strategic leadership position. This shift is driven by the increasing complexity of corporate governance, regulatory demands, and the need for sustainable business practices. Below are key trends shaping the modern company secretary’s responsibilities:
1. Strategic advisor in corporate governance
Company secretaries are now pivotal in guiding boards on governance matters, ensuring ethical practices, and aligning corporate strategies with regulatory frameworks. In South Africa, the King IV Report (soon to be King V) emphasises the company secretary’s role in providing professional and independent guidance on corporate governance, positioning them as essential advisors to the board.
2. Integration of ESG into business strategy
Environmental, Social, and Governance (ESG) considerations have become central to corporate strategy. Accenture exemplifies this by launching its 360° Value Reporting Experience, integrating financial and ESG metrics into a unified reporting framework. This initiative required cross-functional collaboration and underscored the company secretary’s role in facilitating comprehensive ESG reporting.
3. Adoption of AI and digital tools
The incorporation of Artificial Intelligence (AI) and digital platforms is enhancing board operations. For instance, the International Holding Company in the UAE appointed an AI bot, Aiden Insight, as a board observer to provide real-time insights and guide strategic decisions. This move highlights the growing importance of technological proficiency in the company secretary’s role. Read more about artificial intelligence and its impact on the company secretary in our best practice guide.
4. Emphasis on cybersecurity and data privacy
With the rise in cyber threats, company secretaries are increasingly responsible for overseeing data protection measures. The case of Interserve, a UK-based company fined £4.4 million for failing to prevent a cyber-attack, underscores the critical need for robust cybersecurity governance. The company secretary plays a key role in ensuring compliance with data protection regulations and mitigating cyber risks.
5. Facilitating board diversity and inclusion
Promoting diversity within the boardroom is essential for effective governance. Company secretaries are instrumental in facilitating board evaluations and succession planning to enhance diversity. A McKinsey study found that companies with diverse boards are 35% more likely to achieve financial returns above the industry median, highlighting the value of inclusive governance practices.
6. Managing hybrid and virtual board meetings
The shift towards hybrid and virtual meetings necessitates adept management to ensure effective communication and decision-making. Platforms like Lumi, adam.ai, Diligent Boards, Computershare and others provide intelligent meeting management solutions, enabling company secretaries to streamline meeting preparations, record accurate minutes, and track decisions, thereby enhancing board efficiency.
In conclusion, the modern company secretary is a strategic partner in corporate governance, driving initiatives in ESG integration, technological adoption, cybersecurity, diversity, and effective board management. Their evolving role is crucial in navigating the complexities of today’s business environment and ensuring sustainable organisational success.
