Company secretaries should act without fear and favour - MAICSA president

KUALA LUMPUR - The role of company secretaries in Malaysia has transformed dramatically over the years.

Company secretaries now serve as corporate advisors responsible for guiding boards of directors on legal, regulatory, and governance matters.

In an interview with Bernama, Malaysian Institute of Chartered Secretaries and Administrators (MAICSA) president Datuk Akbar Moidunny emphasised that company secretaries are no longer confined to administrative roles.

Instead, they act as guardians of corporate governance, advising on compliance with laws, managing potential risks, and ensuring that decisions made by the boards align with the companies’ constitution and legal framework.

"Company secretaries must uphold integrity, remain knowledgeable, and most importantly, speak without fear or favour, even if it means standing firm against the board of directors or management,” said Akbar.

He further explained that company secretaries play a critical role in documenting board decisions and keeping thorough records, which serve as vital evidence should legal issues arise.

"Proper record-keeping is essential. When company secretaries document their advice and the board’s decisions, they protect themselves from being implicated in any wrongdoing.

"These records are their safeguard,” Akbar added.

Company secretaries are also legally obligated to report any suspicious activities within the organisation, such as those outlined in the Anti-Money Laundering Act and the Malaysian Anti-Corruption Commission (MACC) Act.

Akbar noted that while it can be challenging to confront potential wrongdoing, company secretaries are legally protected when acting under the law.

"The law protects company secretaries when they take the appropriate steps to advise against malpractices. Reporting wrongdoing is not only a legal duty but also an ethical responsibility,” Akbar said.

He also emphasised the importance of having adequate procedures in place to prevent illegal practices within organisations.

With the increasing complexity of governance in both the public and private sectors, the demand for skilled and competent company secretaries has risen significantly.

Akbar noted that this demand is particularly evident in small and medium enterprises (SMEs); they increasingly rely on company secretaries for guidance on governance and compliance.

MAICSA, established in 1959 and with over 4,200 members currently, remains committed to supporting the professional development of company secretaries in Malaysia.

The institute provides cutting-edge programmes and works to ensure that its members are equipped to meet the demands of modern corporate governance.

Meanwhile, Corporate Secretaries International Association (CSIA) president Datuk Suseela Menon made Malaysians proud by empowering women within Malaysia and leading on the international stage.

Her role as president highlights the global impact and leadership of Malaysian women, showcasing their ability to excel beyond national boundaries.

CSIA, as the global voice of corporate secretaries and governance professionals, was incorporated in Geneva and launched in Paris in March 2010 under the auspices of the International Finance Corporation and the Organisation for Economic Co-operation and Development (OECD).

Suseela emphasised that advancing women's empowerment must begin at the highest levels, with boards of directors and chief executive officers leading by example.

This includes committing to equal pay and opportunities for women.

"Training is essential in this journey. Although many women are highly qualified and ready for advancement, they need to engage in self-reflection, identify areas for personal growth, and continuously strive for improvement,” she told Bernama.

In this spirit, she highlighted that MAICSA provides leadership programmes designed to empower and develop the next generation of company secretaries, nurturing their growth and potential.

Suseela, a past president and MAICSA council member, was the first female executive director in the UMW Group where she was employed for 30 years.

She was appointed to the boards of several companies in the UMW group, including the Perodua group of companies.

"There is a need to encourage women to focus on building their networks and business relationships, as well as to offer flexible working hours for employees. This will benefit women who juggle dual roles as career professionals and homemakers,” she said. - BERNAMA