Advertisements
Advertisements
Question
Justify the following statement.
The company secretary should take certain precautions while corresponding with debenture holders.
Advertisements
Solution
- Debenture holders are creditors of the company.
- The company secretary has to communicate the decisions of the management and other information to debenture holders through correspondence.
- While writing letters, a secretary should provide correct, up-to-date, and factual information to the debenture holders.
- He should be prompt in replying to any queries or complaints of debenture holders.
- He should not give out sensitive and confidential information about the company. He should always strive to maintain a good image of the company.
- The secretary should follow the provisions of the Companies Act, 2013, and its latest amendments.
- Most importantly, he must use courteous language during all his correspondence.
- Thus, the company secretary should take certain precautions while corresponding with debenture holders.
APPEARS IN
RELATED QUESTIONS
Debenture capital is a ______ capital of a company.
Select the correct answer from the options given below and rewrite the statement.
Debenture holders are ______ of the company.
Bearer debentureholders get interest through ______.
Select the correct answer from the options given below and rewrite the statement.
Return of income on debentures is ______ at fixed rate.
Select the correct answer from the options given below and rewrite the statement.
______ is an acknowledgement of debt issued by the company under common seal.
Match the pairs.
| Group ‘A' | Group ‘B' |
| a) Debentureholder | 1) Borrowed Capital |
| b) Interest on Debentures | 2) Interest coupons |
| c) Convertible Debentures | 3) Evidence of Loan |
| d) Debenture Certificate | 4) Safe and secured investment |
| e) Investment in Debentures | 5) Interest warrant |
| f) Redeemable Debentures | 6) Conversion into Debentures |
| g) Debentures | 7) Risky investment |
| 8) Evidence of shares | |
| 9) Creditor | |
| 10) Conversion into equity shares | |
| 11) Redeemed after fixed period | |
| 12) Redeemed at winding up of company | |
| 13) Owner | |
| 14) Owned Capital |
State whether the following statement is true or false.
Debenture holders get regular dividend.
State whether the following statement is true or false.
Convertible Debentures can be converted into equity shares.
State whether the following statement is true or false.
Debenture holders enjoy full membership rights of the company.
State whether the following statement is true or false.
Dividend warrants are used to pay interest to the debenture holders.
State whether the following statement is true or false.
Debentures are always fully paid-up.
Complete the sentence.
A company cannot issue debentures to more than 500 people without appointing a ______.
Complete the sentence.
The power to issue debentures has been vested with the ______.
Select the correct option.
Return on Debentures ____________.
Explain the following term/concept.
Debentures
Explain the following term/concept.
Precise information
Explain the following term/concept.
Courtesy
Answer in brief.
What are the circumstances under which correspondence can be made with debenture holders?
