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

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsSecretarial PracticeCorrespondence with Debentureholders4 Marks
Question
There are certain circumstances when a secretary has to correspond with debenture holders.
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Answer

    • (i) Debenture holders are the creditors of the company and are entitled to receive the interest.
    • (ii) Secretary being the link between the company and debenture holders has to draft various letters:
      • Allotment letter has to be sent to Debenture holders when the Debentures are allotted.
      • Letter for payment of interest has to be written to Debenture holders to inform them.
      • Payment can be done either through an interest warrant or ECS/ NEFT.
      • Letter informing the Debenture holders about conversion of debentures into equity shares.
      • Letter informing the Debenture holders about the redemption (repayment) of Debentures.
      • Thus, it is rightly justified that, there are different circumstances when a secretary has to correspond with Debenture holders.

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