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

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Question

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

Short/Brief Note
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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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Terms and Conditions for Acceptance of Deposits
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Chapter 5: Deposits - Exercises [Page 92]

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RELATED QUESTIONS

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


Return of deposit must be filed every year on or before ______.


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.
Period within which a company has to create a charge on its tangible assets


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.


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.

Deposit Receipt is issued within 21 days of receipt of deposits.


State whether the following statement is true or false.
Deposit Trust Deed is an agreement between company and Deposit Trustee


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


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.)


Explain the following term/concept.
Deposit Trustee


Explain the following term/concept.
Charge on tangible assets


Explain the following term/concept.
Credit Rating


Justify the following statement.

Companies have to create a charge on their tangible assets while issuing secured deposits.


Find the odd one.


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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