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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
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Answer in one sentence.
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Deposit is a type of ______________________.
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Deposit Trust Deed is an agreement between company and Deposit Trustee
Find the odd one.
Arrange in proper order.
a. Appoint Deposit Trustee.
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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.
Deposit Repayment Reserve Account.
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Company has to fulfill certain provisions related to issue of circular or advertisement.
Justify the following statement.
Companies have to create a charge on their tangible assets while issuing secured deposits.
Give one word or phrase for the following sentence:
Type of company that can accept deposits only from its members or directors.
Arrange in Proper Order:
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