Answer in brief.State the provisions regarding appointment of Deposit Trustee. - Secretarial Practice

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Short Note

Answer in brief.
State the provisions regarding appointment of Deposit Trustee.

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Solution

The provisions regarding Appointment of Deposit Trustee are explained as follows:
When issuing secured deposits, eligible companies and public companies have to appoint one or more Deposit Trustees. The Trustees protect the interest of the depositor in case a company defaults in repaying the depositors. Company signs a contract with the Deposit Trustees called as Trust Deed. It contains the terms and conditions of the contract. The deed has to be signed at least 7 days before issuing the circular or advertisement.
The Deposit Trustee on its own or on the request of one-tenth of depositors can call a meeting of all depositors when a company defaults in repaying deposits.

Concept: Terms and Conditions for Acceptance of Deposits
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Chapter 5: Deposits - Exercises [Page 92]

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RELATED QUESTIONS

Answer in one sentence.
When should a company Deposit?


Select the correct answer from the options given below and rewrite the statement:
Deposit is a type of ______________________.


Write a word or a term or a phrase which can substitute the following statement.
Company which can accept deposits from public up to 35% of its paid-up share capital and free reserves.


Write a word or a term or a phrase which can substitute the following statement.
Document issued by a company to invite its members to subscribe for its Deposits.


Write a word or a term or a phrase which can substitute the following statement.
Agreement between company and Deposit Trustee.


Write a word or a term or a phrase which can substitute the following statement.
Time within which company has to issue deposit Receipt


State whether the following statement is true or false.
Return of deposit must be filed every year on or before 31st March.


State whether the following statement is true or false.
Eligible public company can collect deposits from its members.


State whether the following statement is true or false.

For secured deposits, company has to create a charge on its tangible assets.


Complete the sentence:
Agency which gives ratings of the deposits of a company is called ______________.


Correct the underlined word and rewrite the following sentence.
Charge on assets is created when company issues unsecured deposit.


Arrange in proper order.
a. Obtain Credit Rating.
b. Entries in Register of Deposits.
c. Issue Deposit Receipt.


Explain the following term/concept.
Secured Deposit


Explain the following term/concept.
Deposit Trustee


State any four terms and conditions regarding acceptance of Deposit.


Justify the following statement
Company has to fulfill certain provisions related to issue of circular or advertisement.


Answer the following question:
Explain the provisions related to circular or advertisement for inviting deposits.


Select the correct option from the bracket.

Group ‘A’ Group ‘B’
a) Retained earnings 1 ______
b)  ______ 2 Written communication
c) 36 months 3 ______
d) ______ 4 Charge on assets
e) Cash sales 5 ______

(Less working capital, Correspondence, Secured debentures, Internal source of finance, Maximum tenure of deposits.)


Arrange in Proper Order:

(a) Payment of Deposits

(b) Deposit Receipt

(c) Acceptance of Deposit


Study the following case/situation and express your opinion.

CC Company Ltd. is an eligible Public Company as per the Companies Act, 2013 with reference to accepting Public Deposits.
  1. Can the company accept deposits in joint names?
  2. Can the company accept deposits from its members?
  3. Can the company issue secure deposits?

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