Question

Answer in brief.

What are the circumstances under which the Secretary makes correspondence with depositors?

Answer 1

1. The company accepts deposits for a short period of time in order to meet the company’s short term working capital requirements.

2. Depositors are the creditors of the company.

3. The Company Secretary has to correspond with depositors on various occasions.

4. The Secretary has to communicate various decisions of the Board of Directors to the depositors.

5. The following are the few circumstances when the Secretary enters into correspondence with the Depositors:

1. Thanking depositors for depositing the amount and showing faith in the company.
2. Intimation about payment of interest through –
   i. Interest Warrant
   ii. Electronic payment of Interest
3. Letter informing about the renewal of deposits.
4. Informing depositors about repayment of deposit on maturity