The Company Secretary should take certain precautions while corre…

Question

The Company Secretary should take certain precautions while corresponding with depositors.

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Answer

The deposit represents the short-term borrowed capital of the company.
Depositors are the creditors of the company.
The company secretary should correspond properly with the depositors in order to ensure the continuous flow of investments.
The reply to queries and complaints of depositors should be prompt and courteous.
The letter should be written from the depositors’ point of view and accurate information must be supplied to them.
All the legal provisions must be followed and the goodwill of the company has to be maintained.
Thus, it is rightly justified that the company secretary should take every precaution while corresponding with depositors.

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