Which of the following statements regarding the appointment of a company secretary is correct under the Companies Act 2006?

Answer options:

Both public and private companies must have a company secretary.

Neither public nor private companies are required to have a company secretary.

A private company must have a company secretary, but it is optional for a public company.

A public company must have a company secretary, but it is optional for a private company.

How to approach this question

Recall the deregulation introduced for private companies in the Companies Act 2006.

Full Answer

D.A public company must have a company secretary, but it is optional for a private company.✓ Correct

The Companies Act 2006 removed the mandatory requirement for private companies to have a company secretary (s.270), leaving it as an optional appointment. However, public companies (PLCs) are still legally required to appoint a suitably qualified company secretary (s.271).

Common mistakes

Believing that private companies are still forced to have a secretary (which was true under the old 1985 Act).

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