Business owners are not required to stick with their corporate secretarial service providers under certain circumstances. In the event that removal of a corporate secretary has to be done, the corporation will be required to remove and change to another. Here is what to consider when removing or changing corporate secretarial service providers:
Corporations may consider changing their corporate secretarial service providers based on situations like poor communication, improper guidance and advice concerning compliance regulatory requirements/procedures, hidden/excess additional fees apart from annual retainer fees, and other poor handling of other essential requirements and services that are required by the corporation.
Before switching to new providers offering corporate secretarial services in Singapore, it is imperative to once again make sure that they are eligible for the role. Corporate secretaries could be a local resident in Singapore that has been qualified under the Legal Profession Act, or an accountant that is registered under the Accountants Act. In addition, corporate secretaries can also be a member of the SAICSA, or the Institute of Certified Public Accountants of Singapore. Ideally, business owners should be looking for corporate secretarial service providers who are experienced with the Companies’ Act and accounting principles.
Business owners should familiarise themselves and plan accordingly in order to avoid delays that could cause late filings with ACRA and IRAS so as to prevent their corporation from being penalised by government authorities. Avoid changing corporate secretarial service provided when statutory deadlines, AGM deadlines, and Annual Return Filing deadlines are near.
The corporate secretary can resign by providing a signed resignation letter that is accepted by the corporation and passed through a board resolution. The resignation can be finalised through the bizfile website and finalised through ACRA filings. Should corporate secretaries refuse to corporate, business owners may resort to making use of specific provisions located in the corporation’s articles of association or directors resolution to resign the corporate secretary. Do note that the resignation or removal has to be reported to ACRA (within 30 days).
To appoint a new corporate secretarial service provider, business owners will require another board resolution and to inform ACRA through bizfile once again.