176 SECRETARIAL PRACTICE

Miscel-
laneous.

first thing to do is to stop the payment of the warrant at the
bankers of the company. After instituting due enquiries
with a view to satisfying the board that the warrant has
not been passed through the company’s account, and that
the statement made by the shareholder is, so far as can be
ascertained, correct, a form of indemnity is sent to the
shareholder, and upon this being signed, a duplicate warrant
is issued, the indemnity of course being carefully preserved.
[f the warrant is for a sum less than £5 no stamp is necessary
on the indemnity, but if for a sum of £5 or more the indemnity
must be signed across a sixpenny stamp (see Form 32).

There are other aspects of the accountant’s work of which
the modern secretary who wants to be really abreast of his
work should have at least some knowledge. These include
the law and custom in regard to cheques and negotiable
instruments, and also that relating to income tax, and
sur-tax, sur-tax having been substituted for super-tax
for the year 1929-30 and subsequent years by the Finance
Act, 1927.

Another subject of which the secretary should have some
knowledge is the method of collecting debts due to his com-
pany, either by the ordinary methods of business, or by
legal process, and he will probably find it distinctly advisable
to provide that his office organisation includes an adequate
system for obtaining full information, through trade or
banking channels, or through credit enquiry agencies, with
regard to the credit and standing of actual or prospective
customers or clients.

As the officer responsible for obtaining the authority of the
board where necessary, the secretary should take particular
care to see that every accounting transaction which does not
come within the ordinary routine of his company’s business
is covered by a duly recorded minute of the board. Appro-
priations to or from reserve or depreciation funds, the purchase
or sale of investments, the writing off of bad debts, and various
other transactions not of an ordinary character which are
certain to arise in the history of any company, should all be
authorised by the minutes of the board.

It is the usual practice now for auditors to require minutes
on such points as these to be produced for their inspection, but
whether asked for or not they should be in the minute book.

The record contained in the minute book, duly confirmed
by the chairman’s signature, is a protection not only. for
himself but also for the staff working under him, and the
secretary owes a duty to himself and his staff as well as to
his board of directors.