Advertisements
Advertisements
Question
State, with reasons, whether the following statements are True or False
Depositor's approval is must for renewal of deposit.
Solution
Depositor's approval is must for renewal of deposit. This statement is True. Reasons : (i) On maturity of deposits, a depositor may apply for renewal of the deposition, the renewal of deposits, the old deposit receipt is cancelled and in that place new deposit receipt is issued without repaying deposit amount. (ii) Usually, depositors expect safety and regular income in the form of interest on their investments. If they are satisfied with the above conditions, they get their deposits renewed for a further period. (iii) A company on its own cannot renew the deposits without approaching deposit holders. However, a company is authorised to renew its deposits only if the proposal to renew, is approved and sanctioned by BOD in Board meetings. (iv) Thus, if the depositors are willing and interested, the company can allow the renewal of deposits. Hence, depositors approval is must for renewal of deposits.
APPEARS IN
RELATED QUESTIONS
Write note on Renewal of Deposits.
Match the pairs :
|
Group A
|
Group B
|
| a. Debenture holders |
1. Approval of Secretary
|
| b. Renewal of deposits | 2. Declared between two annual general meetings. |
| c. Interim dividend |
3. Creditors of the company
|
| d. Letter of regret | 4. Primary market |
| e. Stock Exchange | 5. Approval of Depositors |
| 6. Owners of the company | |
| 7. Declared in Extraordinary general meeting. | |
| 8. Share applicant becomes shareholder | |
| 9. Secondary market | |
| 10. Refund order |
Write a letter for Renewal of deposit
