Correspondence with Debentureholders — Secretarial Practice STD 12 Commerce / Arts — Question

(i) Transparency :

• Transparency with debenture holders has to be maintained.
• It is necessary to disclose correct and accurate information of the company, favourable as well as the adverse credit rating of the company, etc. in correspondence.

(ii) Politeness (Courtesy) :

• As debenture holders are the creditors of the company, proper respect should be given to them in correspondence.
• The use of words in the letter should be proper which depicts respect to the debenture holders.
• Rude and harsh words should be strictly avoided.

(iii) Conciseness :

• Letters to the debenture holders should be brief and to the point.
• Unnecessary information should be avoided.

(iv) Accuracy/Precise information :

• The secretary should provide precise and up-to-date information to debenture holders.
• The information must be true and correct.