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Question
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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RELATED QUESTIONS
Answer in one sentence.
When does a company create charge on it’s tangible assets?
Answer in one sentence.
What is Deposit Repayment Reserve Account?
Select the correct answer from the options given below and rewrite the statement:
For premature repayment of deposit, company deducts __________ % of interest.
Write a word or a term or a phrase which can substitute the following statement.
A company which can accept deposits from its members, directors, or their relatives not exceeding 100% of aggregate of paid up share capital and free reserves.
Return of deposit must be filed every year on or before 31st March.
State whether the following statement is true or false.
A private company can collect deposits from public.
State whether the following statement is true or false.
Deposit Trust Deed is an agreement between company and Deposit Trustee
Find the odd one.
Find the odd one
Select the correct option from the bracket.
| Group 'A' |
Group 'B' |
|
a) Government Company |
1) ___________________ |
|
b) ___________________ |
2) Deposits from members |
|
c) 36 months |
3) ___________________ |
|
d) ___________________ |
4) Charge on tangible assets |
|
e) Return of deposit |
5) __________________ |
(File on or before 30th June, Private Company, Secured deposits, Deposits from public, Maximum tenure of deposits.)
Arrange in proper order.
a. Appoint Deposit Trustee.
b. Hold General Meeting.
c. Create charge on assets.
Arrange in proper order.
a. Obtain Credit Rating.
b. Entries in Register of Deposits.
c. Issue Deposit Receipt.
Explain the following term/concept.
Eligible Public Company
Explain the following term/concept.
Secured Deposit
Explain the following term/concept.
Deposit Repayment Reserve Account.
Answer in brief.
State the contents of circular or Advertisement for Deposit
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.)
