Justify the following statements.
1. The Company Secretary should take certain precautions while corresponding with depositors.
Ans. Following are the precautions that the company secretary should take while corresponding with depositors.
(a) Prompt Reply: In any correspondence prompt reply is very important. The company Secretary must give prompt replies to any queries of the depositors.
(b) Courtesy: The letter to the depositors should be polite. A courteous letter shows empathy, respect and mutual understanding.
(c) Secrecy: 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.
(d) Legal provisions: The Secretary must keep in mind legality of content in correspondence with the depositors.
(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.
(2) There are certain circumstances when a secretary has to correspond with Depositors.
Ans. The circumstances when the secretary enters into correspondence with the Depositors are:
(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 deposits about repayment of deposit on maturity.