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Question
Justify the following statement.
The company secretary should take certain precautions while corresponding with debenture holders.
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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.
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