Question

Answer in brief.

Which are the precautions to be taken by the Secretary while corresponding with debenture holders?

Answer 1

A secretary has to communicate the decisions taken by the management and other information to the debenture holders of the company through correspondence. While corresponding, he has to be cautious and careful. The secretary has to keep the following precautions in mind while corresponding with the Debenture holders.

1. CORRECT & PRECISE INFORMATION: The secretary should always provide correct, up-to-date, and factual information to the debenture holders. The secretary should take due care while providing facts and figures.
2. CONCISENESS: The letter to the debenture holders should be concise i.e. it should be brief, short, and to the point. Any unnecessary and irrelevant information must be avoided.
3. POLITENESS (COURTESY): Politeness means the use of courteous language in the letter. Being the creditors, due respect should be given to the debenture holders in secretarial correspondence. The tone of the letter to debenture holders must be polite. Rude language should be strictly avoided while corresponding with the debenture holders.
4. SECRECY: As a confidential officer of the company, the secretary should not disclose any important and confidential information related to the company while corresponding with debenture holders.
5. PROMPT RESPONSE: The secretary should promptly reply to any queries and complaints of the debenture holders. There should not be any delay in the correspondence.
6. IMAGE & GOODWILL OF THE COMPANY: While corresponding with debenture holders, the secretary should always try to maintain goodwill and create a good image of the company in the mind of debenture holders.
7. LEGAL PROVISIONS: The secretary should follow all the statutory provisions of the Companies Act, 2013, and any other relevant laws while corresponding with the debenture holders. The secretary should be cautious and careful while corresponding with debenture holders on legal matters.
8. TRANSPARENCY: To maintain greater transparency with the debenture holders, it is necessary to disclose all correct and accurate information of the company, credit rating of the company, true facts of the company’s affairs, etc. in the correspondence.