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

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.

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