Answer in brief.
(1) Which precautions are to be taken by the Secretary while corresponding with members ?
Ans: Followings are the precautions to be taken by the secretary while corresponding with members:
The Company Secretary has to correspond with Members on various occasions. While writing various letters, the Secretary should give due respect to the Members, provide complete and correct information Thus, writing letters to the Members is a challenging task and it requires skills, knowledge, and techniques.
1. Correct Information: The Secretary should always provide correct, up-to-date, and factual information to the Members. Due care should be taken while giving facts and figures
2. Lucid Language: The Secretary must use simple words, simple sentences, and adopt a convincing style while writing letters to the Members. Technical words, long sentences should be avoided in the letter. It should be easy to understand.
3. Prompt Response: The Secretary must be prompt in sending replies to the letters received from the Members. Any questions or queries raised by the members must be promptly replied by the Secretary. Complaint letters should be promptly attended to without any delay.
4. Secrecy: The Secretary should not disclose any confidential information of the company to the Members. The Secretary should tactfully answer some letters without giving any secret information of the company.
5. Politeness (Courtesy): A courteous letter shows sympathy, respect, and mutual understanding. Politeness means the use of courteous language. A complaint letter should be replied politely. Rude language should be strictly avoided while corresponding with Members.
6. Legal matters: The Secretary should compulsorily follow relevant provisions of the Companies Act, 2013 with the latest amendments and other relevant laws while corresponding with Members. While drafting these letters, if necessary Secretary should consult with a legal advisor on certain matters.
7. Consideration: The writer should due the importance and consideration to the reader and consider the problems of the members. While sending negative replies, he should draft these letters more carefully, so that Members should not be hurt. Secretary should make the member feel that the management honestly regrets refusal.
8. Image of the Company: The Secretary should try to project a good image of the company in every situation. While drafting the letters, the Secretary has to try his best to remove their doubts, queries, and difficulties in a polite and courteous manner.
(2) What are the circumstances under which Secretary undertakes correspondence with members ?
Ans: The following are the few circumstances under which the Secretary enters into correspondence with the members of the company
1. Letter for the issue of the Share Certificate.
2. Letter for Payment of Dividend through
a) Dividend Warrant
b) Electronic Payment of Dividend
3. Letter for Issue of Bonus Shares
4. Reply letter to the query of the member on a low rate of dividend.