Justify the following statements.
1. The Company Secretary should take certain precautions while corresponding with members.
The company secretary should take certain precautions while corresponding with members. They are as follows:
(a) Prompt Reply: In any correspondence prompt reply is very important. The company Secretary must give prompt replies to any queries of the members.
(b) Correct Information: The letter acts as a representative of the organization. Thus, the secretary should always provide all the correct information in a concise or compact manner.
(c) Courtesy: The letter to the members should be polite. A courteous letter shows empathy, respect, and mutual understanding.
(d) Lucid Language: While corresponding with members, the secretary must use simple and lucid language. It should be easy to understand.
(e) Accuracy: In correspondence with members “accuracy” or perfectness is very much important. The Secretary must provide accurate information.
Thus, the company secretary should take certain precautions while corresponding with members.
2. There are certain circumstances when a Secretary has to correspond with members.
There are circumstances under which a secretary has to enter into correspondence with members. They are as follows:
(a) Letter for the issue of share certificate
(b) Letter for Payment of Dividend through:
• Dividend warrant
• Electronic Payment of Dividend Bonus Shares.
(c) Letter for Issue of Bonus Shares
(d) Reply letter to the query of the member on low rate of dividend.
Thus, there are certain circumstances when a secretary has to correspond with members.