Benefits are manifold and its beneficiaries are many. Secretarial audit enables Legal Compliance Management. Ever increasing complexities of Laws and responsibilities of Directors make it imperative. Secretarial Audit helps to detect the instances of non-compliance and facilitates taking corrective measures. It audits the adherence of good corporate practices by the company.
Benefits of Secretarial Audit:
1. Secretarial Audit assures the promoters of a company that those in- charge of its management are conducting its affairs in accordance with the requirements of laws and the owners’ stake is not being exposed to unintended risk.
2. It helps the companies to build their corporate image.
3. Secretarial Audit provides comfort to the Non-executive/Independent Directors that appropriate mechanisms and processes are in place to ensure compliance with laws applicable to the company, thus mitigating any risk from a regulatory or governance perspective.
4. Secretarial Audit helps the investors in taking informed investment decision, as it evaluates the company in terms of compliance and governance norms being followed by the company.
5. The Secretarial Audit provides an in-built mechanism for enhancing corporate compliance generally and help restore the confidence of investors in the capital market through greater transparency in corporate functioning.