A company secretary is a crucial part of any business. They handle the administrative tasks and ensure that the company complies with legal requirements. When it comes to their compensation, companies usually opt for a retainership agreement.

A retainership agreement is a contract between the company and the company secretary. It states the scope of work, the duration of the agreement, and the compensation. It is a mutually beneficial agreement that provides the company with the expertise of a company secretary while giving the secretary a regular stream of income.

One of the key benefits of a retainership agreement is that it ensures continuity. A company secretary is a critical member of the team, and their sudden departure could lead to disruption in the operations. With a retainership agreement in place, the company secretary ensures that they are always available to handle any administrative tasks.

The agreement also helps to establish a clear understanding of the expectations and responsibilities of both parties. The company secretary`s duties may include maintaining the company`s statutory records, preparing minutes of meetings, and filing the necessary documents to the regulator. The agreement ensures that the company secretary delivers the expected services, and the company pays the agreed-upon compensation.

The compensation in a retainership agreement is usually a fixed amount paid monthly or quarterly. The amount may vary depending on the scope of work and the company`s size and industry. It is a predictable expense for the company and an assured income stream for the company secretary.

In conclusion, a company secretary retainership agreement is a win-win situation for both parties. It provides the company with the expertise of a company secretary while ensuring continuity and efficient administration. For the company secretary, it provides a regular stream of income and a clear understanding of their duties and responsibilities.