Answer in brief.

(1) What precautions are to be borne in mind by the Secretary, while corresponding with depositors?
Ans. Following precautions to be taken by the secretary while corresponding with the depositors.
(a)Conciseness: – The letter acts as a representative of the organization. Thus, secretary should always provide all the information in concise or compact manner. – Correspondence with the depositors must be brief and to the point. A letter should not be lengthy. Secretary should provide maximum information in minimum words.
(b) Accuracy: – In correspondence with depositors “accuracy” or perfectness is very much important. The Secretary must provide accurate information. – This is because, correct numerical, factual presentation about the business activities to the depositors help it to take accurate and wise decisions.
(c) Prompt Reply: In any correspondence prompt reply is very important. The company secretary must give prompt replies to any queries of the depositors. – Secretary should provide quick reply to complaints letters without any delay to the depositors.
(d) Secretary : – The secrecy of any business is essential. The Secretary must keep secrecy regarding the affairs of the company while corresponding with the depositors and shall not disclose any confidential matter of the company. – Secrecy is important so that no other party can take undue advantage of it.
(e) Image of the company: – While drafting the letters, secretary has to try his best to remove their doubts, queries and difficulties in a polite and courteous manner. – It is helpful for getting favourable response and built up goodwill of the organization.
(f) Legal provisions: – The Secretary must keep in mind legality of content in correspondence with the depositors. – While corresponding with the depositors, secretary should compulsorily follow relevant provisions of the Companies Act, 2013 with latest amendments and other relevant laws.
(g) Courtesy: – The letter to the depositors should be polite. A courteous letter shows empathy, respect and mutual understanding. – It is helpful for getting favourable response and build up goodwill of the organization. – Secretary should not use any harsh words while corresponding with depositors. Also, rude language should be avoided.
(h) You Attitude: – An ideal letter should be written from the view point of reader. This Is also called as use of You Attitude’. – Therefore, by considering the feeling of reader a letter should be written. Such positive and creative attitude brings favourable response from the reader.

2. What are the circumstances under which the Secretary makes correspondence with depositors.
The Secretary has to communicate various decisions of the Board of Directors to the depositors.
Following are the circumstances when the secretary enters into correspondence with the Depositors
(a) Thanking depositors for depositing amount and showing faith in the company.
(b) Intimation about payment of interest through:
• Interest Warrant
• Electronic payment of Interest
(c) Letter informing about renewal of deposits.
(d) Informing depositors about repayment of deposit on maturity.