Deposits — Secretarial Practice STD 12 Commerce / Arts — Question
Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsSecretarial PracticeDeposits4 Marks
Question
Companies have to create a charge on their tangible assets while issuing secured deposits.
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Answer
A Company accepting a secured deposit from the public, within thirty days of acceptance, has to create a charge on its tangible assets for an amount not less than the amount of deposit accepted.
The chargeable asset amount should not be less than the amount of deposit accepted.
The minimum amount of security should be equal to the amount not covered by Deposit Insurance.
The Security is created in favour of the Deposit trustees.
Creating a charge on the assets ensures safety to the deposits of deposit holders.
In case a company fails to repay the number of deposits, the deposit holders can sell the assets and recover the amount invested.
Thus, it is rightly justified that the companies have to create a charge on their tangible assets while issuing secured deposits.
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