Justify the following statement.

Question 14 Marks

Reply letter contains or specifies the reasons for the low rate of dividend.

Answer

Reply letter is the answer given to the query raised by the member.
The letter is sent to the concerned member who is not satisfied with the payment of dividend made by the company.
The letter contains reasons for the lowering down of the rate of dividend.
The secretary has to convince the shareholders that the dividend is lowered due to void reasons and assure that company will overcome the situation.
Thus, it is rightly said that a reply letter contains or specifies the reasons for the low rate of dividend.

Question 24 Marks

Registered shareholders get dividends through dividend warrants or electronically.

Answer

The dividend is the portion of profits of the company which is distributed to the shareholders of the company.
Dividend can be paid through dividend warrant or by means of electronic mode i.e. ECS or NEFT, etc only to the registered shareholders.
The dividend is paid through dividend coupons to share warrant holders. Share warrant is a bearer document of title to shares.
The letter contains a number of equity shares held, dividend warrant number, gross dividend, TDS if any, the net amount of dividend, etc.
Thus, it is rightly said that the registered shareholders get dividends through dividend warrants or electronically.

Question 34 Marks

Share Certificate is a registered document.

Answer

Share Certificate is the title to the shares issued by the company.
It is duly stamped and signed by two directors and countersigned by the directors under the common seal of the company.
It contains all the details regarding the issue of shares, shareholders’ names, number of shares issued, share certificate number, etc.
It is issued or dispatched to the allottee within two months after allotment of shares.
Thus, it is rightly said that a share certificate is a registered document.

Question 44 Marks

There are certain circumstances when a Secretary has to correspond with members.

Answer

Secretary correspond with members on behalf of the company.
Secretary acts as a link between the company and its members.
When the shares are allotted to the members they are been informed through the allotment letter. Similarly, if the application of shares has been rejected then members are been informed by the regret letter.
Secretary also informs members through letters on various occasions like issue of share certificate, payment of dividend, issue of bonus share, reply to the query raised by the member, etc.
Thus, it is rightly said that, there are certain circumstances when a Secretary has to correspond with members.

Question 54 Marks

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

Answer

The Secretary has to communicate the decisions of the management and other information to the members through correspondence and hence, should be very cautious and careful while corresponding with members of the company. The Secretary should take precautionary measures while writing the letter by giving due respect to the members, and also provide complete and correct information techniques.
The Secretary should always provide correct, up- to date and factual information to the members.
The language used should be simple and convincing.
The Secretary must be prompt in sending replies to the letters received from the members.
He should compulsorily follow provisions of the Companies Act, 2013 with latest amendments and other relevant laws.
The Secretary should try to project good image of the company in every situation.
Thus, it is rightly said that, the Company Secretary should take certain precautions while corresponding with members.

Secretarial Practice Justify the following statement.