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Balbharti Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 12 Correspondence with Statutory Authorities Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 12 Correspondence with Statutory Authorities

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
_____________ is the main authority to regulate the administration of Companies Act, 2013 in India.
(a) MCA
(b) Company Secretary
(c) Board of Directors
Answer:
(a) MCA

Question 2.
The headquarters of MCA is at _____________
(a) Mumbai
(b) New Delhi
(c) Pune
Answer:
(b) New Delhi

Question 3.
To administer the provisions of the Companies Act, 2013 is the objective of _____________
(a) MCA
(b) ROC
(c) Directors
Answer:
(a) MCA

Question 4.
_____________ is responsible for registering companies.
(a) ROC
(b) SEBI
(c) Auditors
Answer:
(a) ROC

Question 5.
The Certificate of Incorporation is issued by _____________
(a) ROC
(b) MCA
(c) NCLT
Answer:
(a) ROC

Question 6.
_____________ can strike off or remove the name of a company from the Register of Companies.
(a) MCA
(b) ROC
(c) SEBI
Answer:
(b) ROC

Question 7.
Central Government exercises administrative control over ROCs through the _____________
(a) MCA
(b) SEBI
(c) Regional Directors
Answer:
(c) Regional Directors

Question 8.
_____________ is the quasi-judicial body set up by the Central Government to grant certain approvals and decide disputes under the provisions of the Companies Act.
(a) MCA
(b) ROC
(c) NCLT
Answer:
(c) NCLT

Question 9.
_____________ can hear appeals against the orders issued by NCLT.
(a) NCLAT
(b) SEBI
(c) MCA
Answer:
(a) NCLAT

Question 10.
An appeal against the order of NCLAT can be filed in the _____________
(a) MCA
(b) SEBI
(c) Supreme Court
Answer:
(c) Supreme Court

Question 11.
_____________ was established as a statutory body to regulate the securities market in India.
(a) NCLT
(b) MCA
(c) SEBI
Answer:
(c) SEBI

Question 12.
_____________ regulates the functioning of Stock Exchange in India.
(a) SEBI
(b) MCA
(c) ROC
Answer:
(a) SEBI

1B. Match the pairs.

Question 1.

Answer:

1C. Write a word or a term or a phrase that can substitute each of the following statements.

Question 1.
The main authority is concerned with the administration of the Companies Act.
Answer:
MCA

Question 2.
The organization is responsible for administering the Companies Act and regulating professional bodies like ICAI, ICSI, etc.
Answer:
MCA

Question 3.
The authority which issues Certificate of Incorporation to company.
Answer:
ROC

Question 4.
Every company has to apply for incorporation to this authority situated in the state where its head office is to be located.
Answer:
ROC

Question 5.
The authority that handles corporate civil disputes in India.
Answer:
NCLT

Question 6.
An appeal against the orders of NCLT is heard by this authority.
Answer:
NCLAT

Question 7.
Regulator of the securities market in India.
Answer:
SEBI

Question 8.
An institution that regulates the functioning of stock exchanges and intermediaries in the securities market.
Answer:
SEBI

1D. State whether the following statements are True or False.

Question 1.
MCA regulates the functioning of the corporate sector as well as administers the Companies Act.
Answer:
True

Question 2.
MCA has no supervisory authority over professional bodies like ICSI, ICAI, etc.
Answer:
False

Question 3.
ROC is concerned with the registration of companies.
Answer:
True

Question 4.
On payment of fees, ROC allows the public to inspect certain documents filed with it.
Answer:
True

Question 5.
NCLT has jurisdiction over proceedings on matters of disputes arising under the Companies Act.
Answer:
True

Question 6.
NCLAT can hear appeals against the order of NCLT.
Answer:
True

Question 7.
NCLAT may confirm, modify or reject the orders passed by the NCLT.
Answer:
True

Question 8.
SEBI protects the interest of investors in the securities market.
Answer:
True

Question 9.
ROC is the regulator of the securities market.
Answer:
False

1E. Complete the sentences.

Question 1.
Administration of Companies Act and other laws related to corporate world is the responsibility of _____________
Answer:
MCA (Ministry of Corporate Affairs)

Question 2.
Registration of companies is done by _____________
Answer:
ROC (Registrar of Companies)

Question 3.
The authority which handles corporate civil disputes is called as _____________
Answer:
NCLT (National Company Law Tribunal)

Question 4.
The authority which hears appeals against the orders of NCLT is called as _____________
Answer:
NCLAT (National Company Law Appellate Tribunal)

1F. Select the correct option from the bracket.

Question 1.

(NCLAT, Administers Companies Act, SEBI)
Answer:

1G. Answer in one sentence.

Question 1.
Name the authority which administers the Companies Act and Partnership Act.
Answer:
MCA (Ministry of Corporate Affairs).

Question 2.
Name the authority attached to the High Court which helps in the winding up of companies.
Answer:
The authority attached to the High Court which helps in the winding up of Companies is the Official Liquidator.

1H. Correct the underlined word and rewrite the following sentences.

Question 1.
ROC supervises and controls the operations of stock exchanges in India.
Answer:
SEBI supervises and controls the operation of stock exchanges in India.

Question 2.
An appeal can be made against the order issued by NCLT to NCLAT within 90 days.
Answer:
An appeal can be made against the order issued by NCLT to NCLAT within 45 days.

2. Explain the following terms/concepts.

Question 1.
Ministry of Corporate Affairs (MCA)
Answer:

• The MCA is primarily concerned with the administration of the Companies Act, 2013.
• The MCA is responsible to prevent practices from having an adverse effect on competition, to promote and sustain competition in markets.
• MCA supervises certain professional bodies like the Institute of Chartered Accountants of India. (ICAI), Institute of Company Secretaries of India (ICSI), Institute of Cost Accountants of India.
• It works with the help of Regional Directors, ROC, and Official Liquidator.

Question 2.
Registrar of Companies (ROC)
Answer:
The Registrar of Companies (ROC) is an office under the Ministry of Corporate Affairs (MCA) which deals with the administration of Companies and Limited Liability Partnerships in India.

• At present 22 Registrar of Companies is operating in all major states.
• States like Tamilnadu and Maharashtra have more than one ROC.
• ROC is a full-time field officer who has wide powers and responsibilities in administering the Companies Act.
• ROC has to examine various documents filed with it by the companies in compliance with the Companies Act, 2013.
• The ROC has to take decisions on documents filed with it and reply within 30 days from the date of filing the documents.

Question 3.
National Company Law Tribunal (NCLT)
Answer:

• The Central Government has constituted National Company Law Tribunal in June 2016.
• It is a quasi-judicial body, which grants approvals and handles Corporate Civil Disputes.
• The Tribunal operates through 15 ‘Benches’ consisting of 2 members i.e. a judicial member and a technical member.
• The Tribunal has to dispose of every application or petition within 3 months of receiving it.
• An appeal against the order of NCLT can be made to National Company Law Appellate Tribunal (NCLAT).

Question 4.
National Company Law Appellate Tribunal (NCLAT)
Answer:
National Company Law Appellate Tribunal was constituted for hearing appeals against the orders of the National Company Law Tribunal.

• NCLAT is also the Appellate Tribunal for hearing appeals against the order passed by the Insolvency and Bankruptcy Board of India.
• It is headed by a chairperson and has a maximum of 11 members comprising of judicial and technical members.
• An appeal can be made against the order issued by NCLT to NCLAT within 45 days.
• An appeal can be made against the orders of NCLAT to Supreme Court within 60 days.

Question 5.
Securities and Exchange Board of India (SEBI)
Answer:

• SEBI was established in 1992 as a statutory body to regulate the Securities Market in India.
• Its head office is in Mumbai.
• It supervises and controls the operations of Stock Exchanges, Companies issuing securities, and other intermediaries like Underwriters, Merchant Bankers, Brokers, etc.
• It protects and safeguards the interest of the investors in the security market.
• The main objective is to regulate the functioning of securities markets and stock exchanges.
• It develops a code of conduct for fair practices by intermediaries.

3. Answer in brief.

Question 1.
State the powers of ROC.
Answer:
The Registrar of Companies (ROC) is an office under the Ministry of Corporate Affairs (MCA) which deals with the administration of Companies and Limited Liability Partnerships in India. At present 22 Registrar of Companies is operating in all the major states. States like Tamilnadu and Maharashtra have more than one ROC. ROC is a full-time field officer who has wide powers and responsibility in administering the Companies Act.

Following are the powers of ROC:

• To extend the time of the Annual General Meeting other than the first AGM by a period not more than 3 months.
• To inspect or call for books of account, other books, and papers.
• To seek in writing any information or explanation with regard to any document furnished to ROC.
• Seek the Special Court to issue an order for seizure of books and papers of the company, if the ROC feels that such records may be destroyed, altered, or falsified.
• To strike off the name of a company from the Registrar of Companies.

Question 2.
State the powers of NCLT.
Answer:
Meaning of NCLT:
The Central Government has constituted National Company Law Tribunal in June 2016. The NCLT is a quasi-judicial body, which grants approvals and handles Corporate Civil disputes.

Powers of NCLT:

• To hear and decide all proceedings related to compromise, arrangement, and reconstruction of a company.
• To hear and decide all winding up petitions on the ground of inability to pay its debts and on other grounds.
• To hear and decide petition for an extension of time for repayment of deposits.
• To hear and decide cases pertaining to oppression and mismanagement of a company.
• To call for holding AGM or EOGM of a company.
• To direct a company not to dispose of funds of a company and to freeze the assets of a company for being used against the interest of the company.
• To hear and decide grievances of rejection in transferring shares and securities.

Question 3.
What are the objectives of MCA?
Answer:
The MCA is primarily concerned with the administration of the Companies Act, 2013.
It frames the rules and regulations for regulating the functioning of the corporate sector in accordance with the law.

Objectives of MCA:

• To administer the provisions of the Companies Act, 2013, and other allied laws.
• To quickly identify non-compliance with the Companies Act.
• To encourage companies to improve Corporate Governance and adopt responsible business practices.
• To promote fair competition.
• To make available to the public, corporate data.
• To offer various services to the stakeholders.

4. Justify the following statements.

Question 1.
The MCA was set up by Central Government to fulfill certain objectives.
Answer:
The MCA is primarily concerned with the administration of the Companies Act, 2013.
It frames the rules and regulations for regulating the functioning of the corporate sector in accordance with the law.

Objectives of MCA:

• To administer the provisions of the Companies Act, 2013, and other allied laws.
• To quickly identify non-compliance with the Companies Act.
• To encourage companies to improve Corporate Governance and adopt responsible business practices.
• To promote fair competition.
• To make available to the public, corporate data.
• To offer various services to the stakeholders.

Question 2.
The Companies Act, 2013 has given certain Powers to ROC.
Answer:
The Registrar of Companies (ROC) is an office under the Ministry of Corporate Affairs (MCA) which deals with the administration of Companies and Limited Liability Partnerships in India. At present 22 Registrar of Companies is operating in all the major states. States like Tamilnadu and Maharashtra have more than one ROC. ROC is a full-time field officer who has wide powers and responsibility in administering the Companies Act.

Following are the powers of ROC:

• To extend the time of the Annual General Meeting other than the first AGM by a period not more than 3 months.
• To inspect or call for books of account, other books, and papers.
• To seek in writing any information or explanation with regard to any document furnished to ROC.
• Seek the Special Court to issue an order for seizure of books and papers of the company, if the ROC feels that such records may be destroyed, altered or falsified.
• To strike off the name of a company from the Registrar of Companies.

Question 3.
The Central Government has empowered NCLT with certain powers.
Answer:
Meaning of NCLT:
The Central Government has constituted National Company Law Tribunal in June 2016. The NCLT is a quasi-judicial body, which grants approvals and handles Corporate Civil disputes.

Powers of NCLT:

• To hear and decide all proceedings related to compromise, arrangement, and reconstruction of a company.
• To hear and decide all winding up petitions on the ground of inability to pay its debts and on other grounds.
• To hear and decide petition for an extension of time for repayment of deposits.
• To hear and decide cases pertaining to oppression and mismanagement of a company.
• To call for holding AGM or EOGM of a company.
• To direct a company not to dispose of funds of a company and to freeze the assets of a company for being used against the interest of the company.
• To hear and decide grievances of rejection in transferring shares and securities.

5. Attempt the following.

Question 1.
Write a letter to ROC seeking an extension of time to hold the AGM.
Answer:

Question 2.
Write a letter to MCA with regard to ‘Ticket Raising’.
Answer:

Question 3.
Write a reply to a complaint by the Investor.
Answer:

Question 4.
Write a letter to NCLT seeking an extension of time to repay Public Deposits.
Answer:

Balbharti Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 11 Correspondence with Banks Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 11 Correspondence with Banks

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
A company usually opens _____________ account in a bank.
(a) Current
(b) Saving
(c) Recurring
Answer:
(a) Current

Question 2.
Bank is a _____________ institution.
(a) financial
(b) social
(c) cultural
Answer:
(a) financial

Question 3.
The appointment of banker is usually made by the _____________
(a) Board of Directors
(b) Secretary
(c) Chairman
Answer:
(a) Board of Directors

Question 4.
Resolution for opening Bank Account is passed in the _____________ meeting.
(a) Board
(b) Statutory
(c) Annual General
Answer:
(a) Board

Question 5.
Bank provides overdraft facility to _____________ account holder.
(a) Current
(b) Saving
(c) Fixed Deposit
Answer:
(a) Current

Question 6.
_____________ is used for depositing cash into a bank account.
(a) Pay-in-slip
(b) Withdrawal slip
(c) Cheque
Answer:
(a) Pay-in-slip

Question 7.
Borrowing/Accepting and lending money are considered as _____________ functions of bank.
(a) Primary
(b) Secondary
(c) Agency
Answer:
(a) Primary

Question 8.
Withdrawals are not permitted from the _____________ deposit account.
(a) Fixed
(b) Current
(c) Savings
Answer:
(a) Fixed

Question 9.
_____________ account is suitable to salaried people.
(a) Savings
(b) Current
(c) Fixed
Answer:
(a) Savings

Question 10.
Generally Interest is not paid on _____________ deposit account.
(a) Current
(b) Saving
(c) Fixed
Answer:
(a) Current

Question 11.
A deposit which is kept for fixed period in bank is called _____________ deposit.
(a) Fixed
(b) Current
(c) Recurring
Answer:
(a) Fixed

1B. Match the pairs.

Question 1.

Answer:

1C. Write a word or a term or a phrase that can substitute each of the following statements.

Question 1.
A slip is used for depositing cash and cheque in the Bank account.
Answer:
Pay-in-slip

Question 2.
Permission to withdraw excess amount from Current Account.
Answer:
Overdraft

Question 3.
Separate loan account under which the short-term loan facility is given by the bank to the business.
Answer:
Cash credit

Question 4.
The short-term credit facility is given by the bank to the current account holder.
Answer:
Overdraft

Question 5.
The account is generally opened by the business organization.
Answer:
Current Account

Question 6.
The request of Secretary to the bank not to make the payment of the cheque.
Answer:
Stop payment request

Question 7.
The type of account for which a higher rate of interest is paid to bank depositors.
Answer:
Fixed Deposit Account

Question 8.
The slip is used for withdrawing money from Savings Account.
Answer:
Withdrawal Slip

Question 9.
Negotiable Instrument which can be discounted with the bank.
Answer:
Bill of exchange

1D. State whether the following statements are True or False.

Question 1.
Joint Stock Company opens Current Account.
Answer:
True

Question 2.
Generally, no interest is paid by the bank on the Current Account.
Answer:
True

Question 3.
In cash credit, the customer’s account is credited by the bank with the sanctioned amount.
Answer:
True

Question 4.
Board resolution is not required to open the Current Account with the bank.
Answer:
False

Question 5.
The bank account of the company is operated by shareholders.
Answer:
False

Question 6.
Overdraft facility is granted to Savings account holders.
Answer:
False

Question 7.
Bank correspondence should be brief and to the point.
Answer:
True

Question 8.
It is necessary to instruct the bank to stop the payment of a cheque that is lost.
Answer:
True

Question 9.
A bank overdraft facility is a long-term facility.
Answer:
False

Question 10.
Banks grant long-term loans only.
Answer:
False

1E. Find the odd one.

Question 1.
Saving Deposit, Recurring Deposit, Cash Credit. Fixed Deposit
Answer:
Cash Credit

Question 2.
Overdraft, Fixed Deposit, Discounting of Bills, Cash Credit
Answer:
Fixed Deposit

1F. Complete the sentences.

Question 1.
A financial institution which receives deposits and lends money is called as _____________
Answer:
Bank

Question 2.
Accepting deposits and lending money are the primary functions of _____________
Answer:
Commercial Bank/Bank

Question 3.
A facility under which a customer can overdraw money from his account is called as _____________
Answer:
Overdraft facility

Question 4.
Overdraft facility is given to _____________
Answer:
Current Account Holder

1G. Select the correct option from the bracket.

Question 1.

(Accepting Deposits, Current Account, Letter of Credit, Businessman)
Answer:

1H. Answer in one sentence.

Question 1.
What is a Letter of Credit?
Answer:
A letter of credit is a payment method generally used for international trade transactions. Letter of credit is issued by a bank on behalf of its client, promising to pay a certain amount of money to the seller, in case the buyer fails to pay it.

Question 2.
Which facility is given to the Current Account holder?
Answer:
Overdraft facility is given to Current Account Holder by the Bank.

Question 3.
What do you mean by stop payment of cheque?
Answer:
When a cheque is issued by the company, there is a possibility of misplacement of the cheque or loss in transit. Then it is necessary to inform the bank to stop payment of such cheque.

1I. Correct the underlined word and rewrite the following sentences.

Question 1.
Accepting deposits is the secondary function of Banks.
Answer:
Accepting deposits is the primary function of Banks.

Question 2.
Businessman opens Fixed Deposit Account.
Answer:
Businessman opens Current Account.

Question 3.
Under cash credit facility businessman/account holder can overdraw from his account.
Answer:
Under an overdraft facility, a businessman/account holder can overdraw from his account.

2. Explain the following terms/concepts.

Question 1.
Bank
Answer:
A bank is a financial institution, in which people deposit their idle or surplus cash, and those who need funds borrow from banks.

Question 2.
Demand Deposits
Answer:
The deposits which are repayable on demand are called Demand Deposits.

Question 3.
Time Deposits
Answer:
The deposits which are not repayable on demand are called Time Deposits.

Question 4.
Savings Deposits
Answer:
To encourage saving habit among the people, the bank allows depositors to open a savings account. There are restrictions on the frequency and amount of withdrawals.

Question 5.
Current Deposits
Answer:
This account is normally opened by businessmen, firms, or companies. There is no limit on the amount or number of withdrawals.

Question 6.
Recurring Deposits
Answer:
The account which encourages the customers to make regular savings and to deposit a fixed sum of money for a specific period of time is called Recurring Deposits.

Question 7.
Fixed Deposits
Answer:
Fixed Deposits are the deposits received for a fixed period. The rate of interest is high for fixed deposits. The longer the period of deposit, the higher is the rate of interest.

Question 8.
Loans
Answer:
A loan granted for a specific time period against personal security, gold or silver, and other moveable or immovable assets is called a term loan.

Question 9.
Advances
Answer:
Advances is a credit facility provided by the bank to its customers. It differs from loans in the sense that loans may be granted for a longer period, while advances are for a shorter period.

Question 10.
Cash Credit
Answer:
Under a cash credit facility, a bank allows the borrower to withdraw amounts up to the specified limit. Such credits are allowed against the security of stock of raw material, finished goods, etc.

Question 11.
Overdraft
Answer:
It is a facility where the bank allows its customers to overdraw an amount up to a particular limit. Such facility is allowed against collateral securities like shares, FDR, LIC Policy, etc.

Question 12.
Discounting of Bill
Answer:
It is a short-term finance facility provided by the bank to its customers by allowing discounting of bills and making payment of bills before their due date.

Question 13.
Letter of Credit
Answer:
A letter of credit is a payment method generally used for international trade transactions. A letter of credit is issued by a bank on behalf of its client, promising to pay a certain amount of money to the seller in case the buyer fails to pay it.

Question 14.
Stop payments of cheque
Answer:
When a cheque is sent by the Company, there is a possibility of misplacement of cheque or loss in transit. In that case, it is necessary to inform the bank to stop the payment of such cheques.

3. Distinguish between the following.

Question 1.
Current Account and Savings Account.
Answer:

Question 2.
Loan and Overdraft
Answer:

Question 3.
Fixed Deposit Account and Recurring Deposit Account.
Answer:

4. Answer in brief.

Question 1.
What are the points to be kept in mind by a Secretary while corresponding with Banks?
Answer:
The following precautions must be taken by the secretary while corresponding with banks:

• Prompt reply: For any correspondence with the bank, the reply must be sent without delay is the responsibility of a secretary.
• Brevity/Conciseness: Secretary should provide maximum information in minimum words. A letter should not be lengthy. Unnecessary details, irrelevant information or explanation, lengthy paragraphs should be avoided.
• Courtesy: The letter to the bank should show empathy, respect, and mutual understanding. It is helpful for getting favourable responses and built up goodwill for the organization.
• Accuracy: While corresponding with Bank ‘Accuracy’ and ‘Perfectness’ are very important. Whatever information or data provided must be accurate. No haphazard remarks or statements are to be made.
• Clarity: The secretary must provide true, factual updates and clear information about his organization to the banker. Clarity is required to avoid misunderstandings with bankers.

Question 2.
Under what circumstances will a secretary correspond with the Banks?
Answer:
The following are the circumstances under which a secretary has to correspond with the banks:
(i) Letter for opening a Current Account with the Bank:
The decision of opening a Current account is taken in the Board meeting by passing a resolution. The Board instructs the secretary for opening a Current account. The Secretary has to write a letter to the Bank accordingly and enclose the necessary documents.

(ii) Letter requesting a bank to stop payment of cheque:
When cheques are sent by Companies, there are possibilities of misplacement of cheques or loss in transit. Thus, it is necessary to inform the bank to stop the payment of such cheques.

(iii) Letter requesting a Bank for granting an overdraft facility:
Certain credit facilities are provided by the Bank to their customers. The Bank allows a Current Account holder to withdraw excess amount than the available balance. Secretary has to correspond with the bank to prevail this facility.

(iv) Letter requesting bank to issue a letter of credit:
A letter of credit is a payment method generally used for international trade transactions. Letter of credit is issued by Bank on behalf of its client promising to pay a certain amount of money to the seller in case the buyer fails to pay it. Secretary has to correspond with the bank to obtain this letter of credit.

Question 3.
State the agency functions of Banks.
Answer:
Agency functions of banks are part of secondary functions.
Following are the agency functions of the Bank:

• Bank collects the cheques and Bill of Exchange on behalf of the customers or account holders.
• Bank collects dividends, interest, and salary and credits the account holder’s account.
• Bank makes payment of rent, insurance premium, electricity bill, etc.
• Bank act as a Depository Participant for purchase and sale of securities.
• Transfer of money.
• Fulfill standing instructions of depositors.
• The bank acts as a trustee, an executor of the will, and an attorney for the account holder.
• The bank acts as a Banker to the issue, Lead Manager, etc. for the companies.

Question 4.
State the utility functions of Banks.
Answer:
Commercial Bank provides general utility services to their customers or account holders to attract customers.
Utility functions of Banks are as follows:

• Provide locker facility to customer utility function of banks are as follows.
• Provide a letter of credit facility to account holders for international business transactions.
• Helps to deal in Foreign Exchange.
• Provide Credit cards, Debit cards, and A.T.M. facilities.
• To assist in the purchase and sale of securities.
• Provide traveler’s cheque to customers.

Question 5.
Explain the different types of Deposits.
Answer:
The Bank accepts two types of deposits from the people.
(i) Demand Deposits:
Demand Deposits are deposits, where money is repaid by the bank on the demand made by the depositors or customers of the bank.

Such deposit accounts are:
(a) Savings Deposits:
As the name indicate this account is opened and operated by that person who have regular and fixed income e.g. salary. In order to ‘save’ something out of current income, this account is opened.
Features of this account are:

• It is mainly for saving purposes.
• Money can be withdrawn on demand.
• Minimum balance must be maintained.

(b) Current Deposits:
This account is opened by the businessman, firm, company, etc. for business purposes. There is no limit on the number of withdrawals. Generally, interest is not payable on this account. Overdraft facilities are also allowed to these depositors.

(ii) Time Deposits:
The deposits which are not repayable on demand are called ‘Time Deposits’. These deposits are payable after a specific period of time.

• Fixed Deposits: In this deposit account, a certain sum is kept deposited for a fixed period. A higher rate of interest is paid on Fixed Deposit.
• Recurring Deposits: In this deposit account, the customer deposit’s fixed amount on regular basis for a specific period. The money is deposited periodically. The rate of interest is more than Saving Deposits.

5. Justify the following statements.

Question 1.
The secretary has to correspond with the Banks under certain circumstances.
Answer:
Following are the circumstance under which a secretary has to enter into correspondence with banks:

• Letter for opening a Current account with Bank.
• Letter requesting a bank to stop payment of the cheque.
• Letter requesting a bank for granting overdraft facility.
• Letter requesting a bank to issue a letter of credit.
• Letter to a bank enquiring about new banking facilities.
• Letter to the bank for a long-term loan.
• Thus, the secretary has to correspond with the Banks under certain circumstances.

Question 2.
The secretary should observe certain precautions while corresponding with the Banks.
Answer:
The following precautions must be taken by the secretary while corresponding with the banks:

• Secretary should give a prompt reply.
• Secretary should take care that the letter should not be lengthy.
• Unnecessary details should be avoided.
• Not to use any harsh or rude words while corresponding with the banker.
• Provide true factual updates and clear information about his organization to the bankers.
• Thus, the secretary should observe certain precautions while corresponding with the Banks.

Question 3.
The primary functions of Commercial Banks include-Accepting deposits and Lending funds.
Answer:
The main object of a commercial bank is to accept deposits and lending money to customers or account holders:

• To encourage the people who have surplus funds.
• To encourage the saving habit among the people.
• To give support to businessmen for opening a current account.
• To encourage people to make regular savings.
• To lend loans and advances through various modes i.e. short-term loan, medium-term loan, long term loan, overdraft facility, cash credit facility, and discounting of the bill of exchange, etc.
• Thus, the primary functions of Commercial Banks include-Accepting deposits and Lending funds.

Question 4.
The Bank accepts two types of deposits from the public i.e. Demand and Time Deposits.
Answer:

• The basic aim of the bank is to pool the excess money to the bank and develop the habit of saving amount people.
• Bank accepts deposits in two forms i.e. Demand Deposits and Time deposits.
• Demand Deposits include – Current Deposits and Savings Deposits.
• Time Deposits includes – Fixed Deposits and Recurring Deposits
• Thus, the Bank accepts two types of deposits from the public i.e. Demand and Time Deposits.

Question 5.
There is a difference between Loans and Advances given by the Bank.
Answer:

• Bank lends money in two ways – i.e. Loans and Advance.
• The loan is granted for a specific period of time against personnel security, gold or silver, and other movable or immovable properties.
• Advances is a credit facility provided by the bank to its customers against collateral securities like – shares, Government shares, F.D.R., L.I.C. Policy, Stock of raw materials, or finished goods.
• Loans are granted for a longer period while Advances are granted for a shorter period.
• Loans may be short-term, medium-term, or long-term while advances are in form of overdraft, cash credit, and discounting of bills.
• Thus, there is a difference between Loans and Advances given by the Bank.

Question 6.
Overdraft facility is given only to current depositors.
Answer:
Overdraft is a credit facility allowed to current account holders:

• Under an overdraft facility, the bank allows, customers, to withdraw an amount, up to a particular limit.
• The collateral securities are usually accepted for an overdraft facility.
• The rate of interest charged by commercial banks for overdraft is low.
• Overdraft facility is given only to existing current depositors because they have good relations with the Bank.
• Thus, an overdraft facility is given only to current depositors.

6. Attempt the following.

Question 1.
Write a letter to the bank for opening a Current Account.
Answer:

Question 2.
Write a letter to the bank to stop the payment of the cheque.
Answer:

Question 3.
Letter requesting a bank to issue a Letter of Credit.
Answer:

Question 4.
Write a letter requesting the bank to grant an overdraft facility.
Answer:

Activity (Textbook Page No. 168)

Visit a Bank and collect the form of opening a bank account and find out. The detail to be filled in and Documents needed to open an account.
Answer:
Yesterday, I visited the IDBI Bank of India, Sangamer Branch.
I collected the account opening form from Mr. Abhay Kulkarni Bank Officer.
The following are the details to be filled in in the Account opening form.

1. Branch Name
2. Date of opening account
3. Branch Address
4. Scheme Codes
5. Account Number
6. Type of Account
7. Full name in Capital Letter
8. Date of Birth
9. Occupation
10. PAN
11. Name of Guardian
12. Relationship with minor
13. Operating instruction
14. Facilities required
15. Statement of Account through
16. Other information
17. Declaration, if any
18. Specimen signature
19. Signature

Document required for opening a Bank Account.

1. Certified copy of Articles of Association and Memorandum of Association.
2. Certified copy of Board Resolution regarding the opening of a Current Account.
3. Specimen signature of Directors and Secretary.
4. List of Directors
5. Certificate of Incorporation.

Balbharti Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 10 Correspondence with Directors Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 10 Correspondence with Directors

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
Representatives of shareholders are ____________
(a) directors
(b) employees
(c) servants
Answer:
(a) directors

Question 2.
The notice of the meeting of the Board of Directors must be accompanied by ____________
(a) agenda
(b) minutes
(c) resolution
Answer:
(a) agenda

Question 3.
____________ looks after the management of a company.
(a) Board of Directors
(b) Auditor
(c) Company Secretary
Answer:
(a) Board of Directors

Question 4.
The Directors take decisions at ____________ meeting.
(a) Annual General
(b) Board
(c) Statutory
Answer:
(b) Board

Question 5.
According to Section 167(1)(b) of the Companies Act 2013, if a director absents himself from all the meetings of the Board, for a period of ____________ months or more, with or without the leave of the Board, he shall be deemed to have vacated his office.
(a) 12
(b) 10
(c) 9
Answer:
(a) 12

Question 6.
Every company except OPC and the small company shall hold minimum ____________ Board Meetings in each year.
(a) 4
(b) 3
(c) 5
Answer:
(a) 4

Question 7.
The gap between two consecutive Board Meetings should not be more than ____________ days.
(a) 120
(b) 110
(c) 130
Answer:
(a) 120

1B. Match the pairs.

Question 1.

Answer:

1C. Write a word or a term or a phrase that can substitute each of the following statements.

Question 1.
Elected body of representatives of shareholders.
Answer:
Board of Directors

Question 2.
An employee of a company who provides guidance and advice to the Board of Directors about business matters.
Answer:
Company Secretary

Question 3.
A meeting of all the directors of a company.
Answer:
Board Meeting

Question 4.
A written invitation was given to the Director to attend the meeting.
Answer:
Notice of Board Meeting

1D. State whether the following statements are True or False.

Question 1.
A director can be removed before the expiry of his term.
Answer:
True

Question 2.
Directors act as trustees of the company.
Answer:
True

Question 3.
A director can remain absent for any number of Board Meetings.
Answer:
False

Question 4.
Directors act as agents and trustees of the company.
Answer:
True

Question 5.
Company Secretary need not attend the board meetings.
Answer:
False

Question 6.
Director can take decisions individually.
Answer:
False

1E. Complete the sentences.

Question 1.
The elected representatives of the shareholders are called as ____________
Answer:
Board of Directors

Question 2.
The meeting of all Directors is called as ____________
Answer:
Board Meeting

Question 3.
The notice period for Board Meeting shall not be less than ____________
Answer:
7 days

1F. Select the correct option from the bracket.

Question 1.

(Board Meeting, Not less than 7 days, Disclosure of personal interest)
Answer:

1G. Answer in one sentence.

Question 1.
When does a Director vacate his office due to absenteeism at Board Meeting?
Answer:
When the director is absent for all meetings of the Board held during a period of twelve months, with or without the leave of absence from the board, he shall be deemed to have vacated his office.

Question 2.
Can a Director who was absent at the Board Meeting get a copy of the minutes of that Board Meeting?
Answer:
If the director is absent for a board meeting he has the right to get a copy of the minutes of that Board Meeting.

1H. Correct the underlined word and rewrite the following sentences.

Question 1.
Secretary is an elected representative of the shareholders.
Answer:
Director is an elected representative of the shareholders.

Question 2.
Secretary is responsible for the decision-making and framing policies of a company.
Answer:
Director is responsible for the decision-making and framing policies of a company.

2. Explain the following terms/concepts.

Question 1.
Director
Answer:
Director is any person occupying a position by whatever name called, Directors are authorized by shareholders to conduct the activities of the company. Director prepares policies to achieve the aims of the company.

Question 2.
Board of Directors
Answer:
Directors are elected representatives of shareholders. Directors are responsible for decision making, policy framing, and determination of plans for achieving the target set. They have to exercise proper control, direction, and supervision. Directors exercise their powers and authorities collectively as a “Board”.

Question 3.
Conciseness
Answer:
Business letters to directors must be brief and to the point. Unnecessary details, irrelevant matters must not be written, conciseness refers to ‘briefness’. It is said that ‘brevity is the soul of correspondence’.

Question 4.
Politeness
Answer:
While corresponding with Directors, simple words and language must be used. A letter must show empathy, respect, and mutual understanding. It helps to create goodwill. Unnecessary big terms, long sentences should be avoided. Secretary should not use any harsh words while corresponding with directors.

Question 5.
Initiative
Answer:
The secretary must take utmost care while corresponding with directors. He should take the lead to make arrangements for the board meetings. Secretary also helps the directors in conducting meetings.

Question 6.
Notice and Agenda of board meeting
Answer:
The notice of the Board meeting is a document that is sent to all directors of the company. All types of companies are required to give notice of at least 7 days along with agenda before the actual day of the meeting. Notice of Board meetings is generally sent by hand delivery or by post or by electronic means.

3. Answer in brief.

Question 1.
What are the points to be considered by a secretary while corresponding with the directors?
Answer:
Following are the points or precautions to be taken by the secretary while corresponding with Directors.

• Initiative: The secretary must take utmost care while corresponding with directors. He should take the lead to make arrangements for the board meetings. Secretary also helps the directors in conducting meetings.
• Accuracy: In correspondence with directors “accuracy” or perfectness is very much important. Whatever information, action, data, or reply is to be given, must be given accurately. Secretary should provide correct, accurate, and perfect information.
• Promptness: Every letter must be dealt with promptly, whatever might be the subject matter. Prompt replies always create a good impression about your organization, delays in correspondence may prove to be costly in a later stage.
• Brevity: The letter acts as a representative of the organization. Hence, the secretary should always provide all information in a compact manner. A letter should not be lengthy. Secretary should provide maximum information in minimum words.
• Politeness: In correspondence with directors simple and words and language must be used. Unnecessary use of big terms, long sentences should be avoided. Secretary should not use any harsh words.

Question 2.
Under what circumstances will a secretary correspond with a director?
Answer:
Following are the circumstances when a company secretary corresponds with a Director:

• Sending Notice and Agenda of routine Board Meeting.
• Requesting a director to disclose his interest in a particular contract.
• Forwarding the minutes of the meeting to the directors who were absent from the meeting.
• Intimation to the director about the provisions regarding absenteeism at board meetings.

4. Justify the following statements.

Question 1.
Directors exercise their powers and authorities collectively as a Board.
Answer:

• The Directors occupy a very important position in the company’s management.
• They are elected representatives of the shareholders.
• Directors are responsible for decision making, policy framing, and determination of plans for achieving the target set.
• They have to exercise proper control, direction, and supervision.
• Directors exercise their powers and authorities collectively as a “Board”.

Question 2.
The Secretary should take certain precautions while corresponding with Directors.
Answer:

• The company secretary is an executive officer of a Joint Stock Company.
• The decisions taken by the board of directors are implemented by the secretary.
• The secretary acts as a link between the directors and other management personnel.
• The secretary provides assistance to the directors and guidance to the directors.
• Directors occupy key positions and are superiors, so the communication with them should be cautious and tactful.

Question 3.
The Board of Directors is the elected representative of the shareholders.
Answer:

• A Joint Stock Company is a business organization with a wide scope of business activity.
• Though shareholders of the company are the part of owners as well as the members of the Joint Stock Company, they cannot participate in the management and day-to-day functioning of the company since they are scattered over a large geographical area.
• So, as such the shareholders during the Annual General Meeting elect the directors to act as their representatives and carry on the business activities of the company.

Question 4.
The Secretary has to correspond with Directors on important occasions.
Answer:

• The company secretary is an executive officer of a joint-stock company.
• The decisions taken by the board of directors are implemented by the secretary.
• The secretary acts as a link between the directors.
• The secretary is said to be the ears, eyes, hands, and mouthpiece of the Board.
• So under the following circumstances, the secretary writes letters to Directors:
  • Sending Notice and Agenda of the routine Board meeting.
  • Requesting directors to disclose their interest in a particular contract.
  • Forwarding the minutes of the meeting to the directors, who were absent for the meeting.
  • Intimating the director, the provisions regarding absenteeism at consecutive board meetings.

5. Answer the following questions.

Question 1.
Draft the notice and agenda of routine board meetings.
Answer:

Question 2.
Write a letter to the director requesting him to disclose his personal interest in a contract.
Answer:

Question 3.
Write a letter to the director who was absent for a Board Meeting to inform him about the proceeding of the meeting.
Answer:

Question 4.
Write a letter to the director reminding him about the provision relating to absenteeism at the Board Meeting.
Answer:

Balbharti Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 9 Business Communication Skills of a Secretary Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 9 Business Communication Skills of a Secretary

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
Business communication is concerned with ____________ activities.
(a) economic
(b) business
(c) social
Answer:
(b) business

Question 2.
Written communication is a ____________ record.
(a) permanent
(b) temporary
(c) unauthorised
Answer:
(a) permanent

Question 3.
E-mail is ____________ mode of communication.
(a) fastest
(b) slowest
(c) costliest
Answer:
(a) fastest

Question 4.
A unique internet address of website is known as ____________
(a) World Wide Web
(b) Uniform Resource Locater
(c) .com
Answer:
(b) Uniform Resource Locater

Question 5.
____________ is an organised statement of facts.
(a) Report
(b) Notice
(c) Heading
Answer:
(a) Report

Question 6.
There should be proper ____________ between words, lines and between paragraphs.
(a) margin
(b) typing
(c) spacing
Answer:
(c) spacing

Question 7.
____________ refers to use of minimum words.
(a) Courtesy
(b) Conciseness
(c) Correctness
Answer:
(b) Conciseness

Question 8.
A letter without ____________ is invalid.
(a) ‘You’ attitude
(b) signature
(c) clarity
Answer:
(b) signature

1B. Match the pairs.

Question 1.

Answer:

1C. Write a word or a term or a phrase that can substitute each of the following statements.

Question 1.
Process of communication, conveying a message in spoken form.
Answer:
Verbal communication

Question 2.
A set of interconnected web pages located on a single web domain.
Answer:
Website

Question 3.
Part of a business letter that introduces the sender to the receiver.
Answer:
Heading

Question 4.
A written summary of the business transacted at the meeting.
Answer:
Minutes

Question 5.
Part of a letter that contains the name and address of the sender.
Answer:
Heading or Letterhead

Question 6.
Audio-Visual means of electronic communication.
Answer:
Video conference

1D. State whether the following statements are True or False.

Question 1.
Notice is a written summary of business transacted at a meeting.
Answer:
False

Question 2.
Written communication provides permanent records.
Answer:
True

Question 3.
Active listening is essential for effective communication.
Answer:
True

Question 4.
The inside address gives the name and address of the sender.
Answer:
False

Question 5.
A letter without a date is incomplete and invalid.
Answer:
True

Question 6.
The reference number shows the purpose of the letter.
Answer:
False

Question 7.
Coherence refers to the logical arrangement of the contents of a letter.
Answer:
True

Question 8.
A letter should have minimum folds.
Answer:
True

1E. Find the odd one.

Question 1.
Paper, Margin, Typing, Courtesy
Answer:
Courtesy

Question 2.
Clarity, Courtesy, Spacing, Correctness
Answer:
Spacing

Question 3.
Date, Inside Address, Conciseness, Subject
Answer:
Conciseness

1F. Complete the sentences.

Question 1.
When communication is done through Reports, Letters, Circulars, etc it is called as ____________
Answer:
written communication

Question 2.
Proper arrangement of different parts of business letter is called as ____________
Answer:
layout

Question 3.
The part of the letter which contains the name and address of the receiver of the letter is called as ____________
Answer:
inside address

1G. Select the correct option from the bracket.

Question 1.

(Minimum words, Completeness, Courtesy, Consideration)
Answer:

1H. Answer in one sentence.

Question 1.
Name the type of communication in which words are not used.
Answer:
Non-verbal communication is the type of communication in which words are not used.

Question 2.
Name the type of communication in which communication is done in spoken form.
Answer:
Verbal communication is the type of communication in which communication is done in spoken form.

Question 3.
Name the type of communication which can be re-read.
Answer:
Written communication is the type of communication that can be re-read.

1I. Correct the underlined word and rewrite the following sentences.

Question 1.
Consideration means the letter should be in a logical sequence.
Answer:
Coherence means the letter should be in a logical sequence.

Question 2.
Completeness means the use of minimum words.
Answer:
Conciseness means the use of minimum words.

Question 3.
Complimentary close contains greetings to the reader of the letter.
Answer:
Salutation contains greetings to the reader of the letter.

1J. Arrange in proper order.

Question 1.
(a) Heading
(b) Complimentary close
(c) Subject
Answer:
(a) Heading
(b) Subject
(c) Complimentary close

Question 2.
(a) Enclosure
(b) Body of letter
(c) Date
Answer:
(a) Date
(b) Body of letter
(c) Enclosure

2. Explain the following terms/concepts.

Question 1.
Communication
Answer:

• Communication is derived from the Latin term ‘communis’ that means ‘common’- ‘Shared by all’.
• Communication is an exchange of facts, ideas, opinions, or emotions by two or more persons.
• Communication is a two-way process where the thoughts feelings and opinion is transmitted.
• Effective communication is when a message is conveyed by the sender and received by the receiver exactly the same it was intended.
• It is giving or exchanging information, signals, or messages by talk, gestures, or writing.

Question 2.
Business Communication
Answer:

• Business communication is the branch of general communication especially concerned with business activities.
• It is a process through which information, facts, ideas, orders, decisions, etc. are exchanged between the person associated with the business.
• The success of the business enterprise depends largely upon good communication.
• Ineffective communication may cause loss of money and even goodwill of a business.
• Thus, business communication relating to trade, law, management, finance, etc. of a business enterprise is termed as business communication.

Question 3.
Written Communication
Answer:

• The exchange of information or ideas in a written form is known as written communication.
• Written communication includes reports, letters, circulars, etc.
• Written communication is the most important and the most effective mode of business communication.
• The words written should convey specific meaning and should not confuse the reader.
• Letters, memos, notices, circulars, reports, minutes are some common types of written communication.

Question 4.
Business Correspondence
Answer:

• Communication through the exchange of letters is known as correspondence.
• A businessman who writes letters in his day-to-day transactions is called business correspondence.
• Business correspondence is a written communication between two parties.
• Business correspondence takes place because the place of production and place of consumption is not the same.

Question 5.
Report
Answer:

• A report is an organized statement of facts or opinions leading to some conclusion with or without some recommendations.
• It is a systematic presentation of facts on a specific topic.
• Some reports are made as per the Companies Act and some are prepared as per the requirement of the company.
• A report may be prepared by an individual or by a committee.

Question 6.
Minutes
Answer:

• It is a written summary of the business transacted at the meeting.
• It is a concise and accurate official record of the discussion and decision at company meetings.
• It can be used for future reference.
• Minutes is the official record of the meeting so it is necessary to draft minutes in a proper format.
• Minutes should be prepared by the secretary within 15 days of a meeting.
• It is always written in the past tense.
• Minutes are prepared by the secretary, confirmed by a member, signed by a chairman, and countersigned by the secretary.

3. Study the following case/situation and express your opinion.

1. Mr. Rahul is the secretary who has been asked by the Managing Director to inform a director about a decision taken in a board meeting in which he was absent. Which aspect of essentials of a good business letter he follows:
(Clarity, conciseness, coherence, courtesy, completeness, correctness)

Question (a).
When he is giving the required information in a very short and brief manner?
Answer:
Clarity and conciseness

Question (b).
When he is using courteous words so as to be polite?
Answer:
Courtesy

Question (c).
When he is giving the entire information about the meeting in a proper manner?
Answer:
Coherence, completeness, and correctness.

4. Answer in brief.

Question 1.
Explain any four essentials of effective communication.
Answer:

• Communication is an exchange of facts, ideas, opinions, or emotions by two or more persons.
• Effective communication is when a message is conveyed by the sender and received by the receiver exactly the same it was intended.
• Being able to communicate effectively is an essential skill.

The following are the essentials skills for effective communication:
(a) Listening:

• One of the most important aspects of business communication is being a good listener.
• Effective communication requires active listening.
• Active listening involves hearing and understanding a person.

(b) Body language:

• Body language is an important communication tool.
• Body language should convey words.
• Tone, hand gestures, and ensuring eye contact are involved in body language.

(c) Clear and concise:

• The message should be conveyed by using as few words as possible, whether in person or through telephone, or e-mail.
• The message should be clear concise and direct.
• Excessive words should be avoided.
• Thought should be given to the message before being conveyed in order to avoid confusion.

(d) Confident:

• For effective communication, confidence is needed.
• Making eye contact but having a friendly tone always shows confidence.

Question 2.
State any four essentials of a good business letter.
Answer:

• A business letter is a type of written communication written by the secretary.
• Good letter writing is important for maintaining the image of the business.
• It helps in understanding the objective of the content and helps to make the correct decision.

A business letter should possess the following qualities:
(a) Clarity:

• The message of the letter must be clear.
• Simple and common words are to be used.
• Technical and short forms should be avoided.
• Names and figures should be correct and clear.

(b) Conciseness:

• The letter should be brief.
• Minimum words are to be used.
• Unnecessary and irrelevant information should be avoided.
• A brief letter saves time for the reader.

(c) Completeness:

• A letter must give complete information to the reader.
• The letter should cover all possible facts related to the subject matter.
• An incomplete letter does not achieve the desired results.

(d) Courtesy:

• Courtesy means the language of the letter must be polite and kind.
• A courteous letter gets a favorable response from the reader.
• Harsh, rude words, insulting remarks must be avoided.

5. Justify the following statements.

Question 1.
Written communication is very useful to the organization.
Answer:

• The exchange of information or ideas in a written form is known as written communication.
• Written communication is the most important and effective mode of business communication.
• It provides us with records, references, etc. on which important decisions are taken.
• It provides legal defense to the organization through records, letters, instructions, etc.
• It provides uniformity of policy and procedures and builds proper guidelines for the working of the organization.
• It builds an image of the company.
• It leads to accuracy and dependability.
• Responsibility can be easily assigned through written communication.
• It is permanent in nature.
• Thus, written communication is very useful for the organization.

Question 2.
Social media network is very useful to the business.
Answer:

• Social media are online interactive groups created using advanced mobile and web-based technologies.
• From the business point of view, it provides a great opportunity to interact with the public and communicate about their product and services.
• It helps in developing loyalties.
• It builds a strong relationships with the audience and consumers.
• Social networking makes relationships more personal.
• Business can be promoted more effectively through advertising.
• Thus, social media network is very useful to the business.

Question 3.
Listening is the most important aspect of effective communication.
Answer:

• The most important aspect of effective communication is being a good listener.
• Effective communication requires active listening.
• Active listening involves hearing and understanding what a person is saying to you.
• Without the ability to listen effectively, messages are generally misunderstood.
• Good listening skills can lead to better customer satisfaction.
• It can increase productivity with fewer mistakes.
• Increased sharing of information will lead to more creative and innovative work.
• Thus listening is the most important aspect of communication.

6. Answer the following questions.

Question 1.
State the merits of written communication.
Answer:

• When the exchange of information or ideas is in a written form is known as written communication.
• Written communication includes reports, letters, circulars, etc.
• Written communication is the most important and the most effective of any mode of business communication.
• The words written should contain specific meaning and should not confuse the reader.
• Letter, memos, notices, circulars, minutes are some common types of written communication.

The following are the merits of written communication:
(a) Accurate and precise:

• Written communication is drafted with great care.
• The communicator has to be accurate and factual as it is open to verification.
• Therefore written communication focuses greater on accuracy and precision.

(b) Re-read many times:

• The receiver of written communication can read the message any time again in the future.
• He can re-read it till it is properly understood by him.

(c) Permanent record:
Written communication becomes a permanent record of the organization and can prove very useful for future reference.

(d) Documentary evidence:
Written communication is acceptable as legal documents and as legal evidence also.

(e) Wide access:
Written communication is the best channel of communication for conveying information to people living in different places.

(f) No need for personal contact:

• It is not necessary for both parties to be available at the time of communication.
• Messages can be sent to the concerned person who can read when receives and gets spare time.

(g) Completeness:

• Written messages are prepared with perfect knowledge related to the matter.
• So there is completeness in the message.

(h) Economical:

• This method is economical when the receiver is far away from the business place.
• E-mails are the most popular method of written communication.

Question 2.
Explain different parts of a business letter.
Answer:

• A business letter is a type of written communication written by a secretary.
• Good letter writing is important for maintaining the image of the business.
• The business letters are written with the objective of understanding and take the correct decisions.

The following are the different parts of the business letter:
(a) Heading:

• The heading contains the name, address, telephone number, email id, website CIN of the company.
• It is that part of the business letter which introduces the sender to the receiver.

(b) Date:

• The date is written on the right-hand side of the letter just below the heading.
• The date includes the date, month, and year.
• A letter without a date is incomplete.
• The date is very important as the letter acts as legal evidence.
• Eg. British style – 1st April 2019
  American style – April 1st, 2019

(c) Reference number:

• It is written on the left-hand side below the heading.
• The reference number is given to have a quick reference to the matter concerned.
• The outgoing letter is given a reference number.

(d) Inside address:

• It contains the name, address of the receiver of the letter.
• It is written on the left-hand side of the letter.
• For names, Mr, Shri, Mrs, or Smt are used and for firms, Messrs is used.

(e) Subject:

• The reader gets the idea of the matter of the letter without reading the letter completely.
• It helps to send it to the concerned section.
• It is written in brief as the subject.

(f) Salutation:

• Salutation is a greeting from the writer.
• It creates a favorable impression on the reader’s mind.
• It appears on the left margin below the inside address.

(g) Body of the letter:

• It is the most important part of the business letter.
• It contains the actual message for the receiver of the letter.
• The message should be divided into paragraphs. The first paragraph, Main paragraph, Closing paragraph.

(h) Complimentary close:

• This is the concluding part of the letter.
• It is written below the body of the letter on the right-hand side.
• It shows the polite end of the letter.
• It should match salutation.

(i) Signature:

• It is the final part of the letter.
• A letter without a signature is incomplete and invalid.
• Below the signature, the name and his or her designation are written.
• The person who signs is responsible for the matter written in the letter.

(j) Enclosure:

• It includes documents, cheques, etc. which are attached with the letter.
• It is shown by word enclosure which is written on the left-hand side.

Activity (Textbook Page No. 144)

How can a company use Twitter and Blogs to reach out to outsiders?
Answer:

• Twitter is considered to be an effective tool to grow your business and its brand name.
• Twitter uses attractive hashtags that attract the attention of the targeted audience or customers.
• It is an excellent platform to approach and get connected to new audiences gaining their positive opinions.
• The cost of Twitter is very nominal, so small business organizations can use its benefits easily.
• Twitter helps to connect a huge number of new customers as well as keep connected to old customers.
• It also helps to build the brand name and recognition with the help of advertisements.
• It helps to create a customer support channel and recognition who tweets positively as well as negatively about your product. Thus company or firm can improve its brand name.
• Similarly, blogging also helps businesses to compete with competitors in the market.
• Blogging helps to post in detail the qualities of your product which reaches a number of customers.
• Needed customers can easily approach your business or profession by viewing your blog.

Balbharti Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 8 Company Meetings – II Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 8 Company Meetings – II

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
The secretary has to prepare ____________ before the meeting.
(a) resolution
(b) notice
(c) minutes
Answer:
(b) notice

Question 2.
General Meeting must have a notice of at least ____________ clear days.
(a) 7
(b) 21
(c) 14
Answer:
(b) 21

Question 3.
The gap between two annual general meetings should not be more than months.
(a) 15
(b) 18
(c) 24
Answer:
(a) 15

Question 4.
Auditor is appointed in ____________
(a) Annual General Meeting
(b) Creditors Meeting
(c) Extra ordinary General Meeting
Answer:
(a) Annual General Meeting

Question 5.
The business transacted in extra ordinary general meeting is ____________ business.
(a) Ordinary
(b) Routine
(c) Special
Answer:
(c) Special

Question 6.
An extraordinary general meeting is held ____________
(a) once in a year
(b) once in the life time
(c) under special circumstances
Answer:
(c) under special circumstances

Question 7.
Writing the minutes of meeting is the duty of the ____________
(a) Chairman
(b) Director
(c) Secretary
Answer:
(c) Secretary

Question 8.
New Directors in place of retiring Directors are appointed in the ____________
(a) Class Meeting
(b) Annual General Meeting
(c) Creditors Meeting
Answer:
(b) Annual General Meeting

Question 9.
Before the Annual General Meeting is held the Secretary has to compile ____________
(a) Auditor’s Report
(b) Committee Report
(c) Annual Report
Answer:
(c) Annual Report

Question 10.
The Secretary has to draft the minutes of the meeting within ____________ days of the meeting.
(a) Fifteen
(b) Sixty
(c) Forty
Answer:
(a) Fifteen

1B. Match the pairs.

Question 1.

Answer:

1C. Write a word or a term or a phrase that can substitute each of the following statements.

Question 1.
A meeting of shareholders which is held once a year.
Answer:
Annual General Meeting

Question 2.
A meeting of shareholders is held between two annual general meetings.
Answer:
Extra Ordinary General Meeting

Question 3.
A Report which is prepared before Annual General Meeting.
Answer:
Annual Report

Question 4.
A meeting of the shareholders is held under special circumstances.
Answer:
Extra Ordinary General Meeting

Question 5.
A meeting of the preference shareholders of a company.
Answer:
Class Meeting

1D. State whether the following statements are True or False.

Question 1.
Only special business is transacted at Annual General Meeting.
Answer:
False

Question 2.
Annual Report is prepared by members.
Answer:
False

Question 3.
Extraordinary General Meeting is called for a special and urgent purpose.
Answer:
True

Question 4.
A member has a right to attend a Board meeting.
Answer:
False

Question 5.
A class meeting is the meeting of a particular class of shareholders.
Answer:
True

Question 6.
Director cannot appoint a proxy to attend and vote at the board meetings.
Answer:
True

Question 7.
21 clear days notice should be given in case of Board Meeting.
Answer:
False

Question 8.
Secretary has to arrange to take down the notes of the proceedings of the meeting.
Answer:
True

1E. Find the odd one.

Question 1.
Annual General Meeting, Extra Ordinary General Meeting, Board Meeting.
Answer:
Board Meeting

Question 2.
Annual General Meeting, Committee Meeting, Class Meeting.
Answer:
Committee Meeting

1F. Complete the sentences.

Question 1.
The meeting which is held once in every financial year is called as ____________
Answer:
Annual General Meeting

Question 2.
The meeting held to discuss and decide any special or urgent matters is called as ____________
Answer:
Extra-ordinary General Meeting

Question 3.
Meeting of all Directors is called as ____________
Answer:
Board Meeting

Question 4.
The Authority to convene the Annual General Meeting is with the ____________
Answer:
Board of Directors

1G. Select the correct option from the bracket.

Question 1.

(Notice of General Meeting, Extraordinary General Meeting, Not more than 15 months, within 30 days of company’s Incorporation)
Answer:

1H. Answer in one sentence.

Question 1.
Who can attend Board Meetings?
Answer:
Board of Directors attends Board Meetings.

Question 2.
When can an Adjourned Annual General meeting be held?
Answer:
Adjourned Annual General Meeting will be held on the same day, same place and same time in the next week.

Question 3.
Why is Extra-Ordinary General Meeting held?
Answer:
Extra Ordinary General Meeting is held under special circumstances to discuss urgent and important matters.

Question 4.
When should the first Annual General Meeting be held?
Answer:
The first Annual General Meeting must be held within nine (9) months of the closing of the first financial year of the company.

Question 5.
What should be the interval between two Annual General Meetings?
Answer:
The time interval between two Annual General Meetings should not be more than 15 months.

Question 6.
What should be the gap between two Board Meetings?
Answer:
The gap between the two Board Meetings should not be more than 120 days.

1I. Correct the underlined word and rewrite the following sentences.

Question 1.
Minimum four Committee Meetings must be held in a year.
Answer:
Minimum four Directors Meetings must be held in a year.

Question 2.
Creditors Meeting must be held once a year.
Answer:
Annual General Meeting must be held once a year.

Question 3.
Extra Ordinary Meeting must be held every year.
Answer:
Annual General Meeting must be held every year.

Question 4.
The Meeting of all Directors is called Annual General Meeting.
Answer:
The Meeting of all Directors is Called Director’s Meeting.

2. Explain the following terms/concepts.

Question 1.
Committee Meeting
Answer:
The Board of Directors may from the committee and delegate some of its powers to them. This committee should consist of only directors. The delegation of such powers to committees is to be authorized by Articles of Association and should be subject to the provisions of the Companies Act. A meeting of Allotment Committee, Transfer Committee, etc are examples of Committee Meeting.

Question 2.
Virtual Meeting
Answer:
If there is any urgency to call Board Meeting and practically not possible for Directors to attend the meeting in a short notice, so with the help of technology, a virtual meeting can be held. The meetings are recorded and active participation of Directors is also possible through video conferencing. Certain special and confidential matters cannot be dealt with through video conferencing as per the directions of the Central Government.

Question 3.
Creditor’s Meeting
Answer:
Creditors of the company include Debenture holders, Depositors, Banks, and others. The meeting of creditors is called when the company proposes to make a scheme for an arrangement with its creditors.
E.g. In the case of winding up of the company, a meeting of creditors and of contributors is held to ascertain the total amount due by the company and also to appoint a liquidator to wind up the affairs of the company.

3. Study the following case/situation and express your opinion.

1. Platinum Limited Company was incorporated on 1st January 2018. Advice the Board of Directors on the following matters.

Question (a).
Within what period should the company hold its 1st Annual General Meeting?
Answer:
First Annual General Meeting must be held within Nine (9) months of the closing of its financial year.

Question (b).
At which place should the Annual General Meeting be held?
Answer:
Annual General Meeting should be held at the registered office or at some other place within the city or village which the registered office of the company is situated.

Question (c).
How many days in advance should the notice and agenda be sent to members?
Answer:
Notice and Agenda should be sent 21 clear days before the Annual General Meeting.

2. XYZ Ltd held its Annual General Meeting on 11th May 2018. On 1st June Mr. X, a Director of the company was arrested for a financial scam. Hence the shareholders of the company want to remove him.

Question (a).
Can the company call for the next Annual General Meeting to be held immediately to remove the Director?
Answer:
No, the company cannot call the next Annual General Meeting immediately to remove the director.

Question (b).
Which meeting of members should the company hold to discuss the removal of the Director?
Answer:
Extra Ordinary General Meeting should be called to discuss removal of the director.

Question (c).
What type of resolution will be passed in this meeting for the removal of the Director?
Answer:
A resolution requiring special notice (section 115) will be passed in the meeting for the removal of the director.

4. Distinguish between the following.

Question 1.
Shareholders’ Meeting and Board Meeting.
Answer:

Question 2.
Annual General Meeting and Extra-ordinary General Meeting
Answer:

5. Answer in brief.

Question 1.
List the duties of a Secretary after the Annual General Meeting.
Answer:
Duties of a Secretary after Annual General Meeting:

• Drafting Minutes: The secretary drafts the minutes of the meeting on the basis of the notes taken down during the proceedings of the meeting.
• Implementation of decisions: The secretary instructs the concerned department for implementing the decisions taken at the meeting.
• Dispatch Dividend Warrants: The secretary has to make an arrangement to dispatch dividend warrants to the shareholders.
• Filing Resolutions: The secretary has to file an Annual Report with the Registrar. In case of a special resolution, the secretary has to file the special resolution with the Registrar within 30 days of passing that resolution.
• Information to Absent Members: The secretary sends the information of the proceedings of the meeting to the absent members.

Question 2.
State the objectives of the Annual General Meeting.
Answer:
Purpose or objectives of Annual General Meeting: The main objective of holding an Annual General Meeting is to provide an opportunity to members to discuss the functioning of the company.

• To review the progress and performance of the company.
• To approve annual accounts, director’s report, and auditor’s report.
• To appoint auditors and fix their remuneration.
• To declare a dividend.
• To elect new directors in place of retiring Directors To transact special business, if any like-
  • business of the company taken over by the Government.
  • the company did not function well through the year, etc.

Question 3.
State any four legal provisions regarding Board Meeting.
Answer:
Legal Provisions relating to Board Meeting:
(i) Authority to Convene:
The chairman of the Board is the proper authority to call the Board Meeting.

(ii) Number of Board Meetings:

• First Board Meeting shall be held within 30 days of the date of its incorporation.
• Subsequently, there should be four meetings in a year.
• The gap between the two meetings should not be more than 120 days.
• At least one Board meeting should be held in 6 months in case of one person company, small company and dormant company.
• The gap between two meetings should not be more than 90 days in the case of one person company, a small company, and a dormant company.

(iii) Notice [Section 173(3)]:

• The notice of every Board Meeting must be given to every director at least 7 days before the meeting at his registered address along with an agenda of the meeting.
• It can also be sent by post or by hand delivery or by E-mail.
• If a company fails to send notice within a given time, then every officer in default shall be liable to a penalty of Rs. 25,000.

(iv) Quorum (Section – 174):

• The quorum for the Board Meeting is 1/3rd of the total number of directors or two directors whichever is higher.
• Any fraction should be rounded to one.
• Interested directors (personal interest in any matter) are not included in the quorum.

Question 4.
What are Class Meetings?
Answer:
Class Meetings (Section 48):

• When the meeting of a particular class of shareholders takes place such as a preference shareholders meeting, it is known as a class meeting.
• Such a meeting may be called for an alteration in the right and privileges of that particular class of shareholders.
• It can also be called for the purpose of conversion of one class of shares into another.
• The class meeting is not held regularly.

Question 5.
What is the purpose of conducting an Extra-ordinary General Meeting?
Answer:
Purpose or Objectives of Extra-Ordinary General Meeting:
The main purpose behind calling this meeting is to make shareholders aware of the happenings in the company or to seek their approval on some urgent and important matters of the company.

• Alteration in the Memorandum of Association.
• Alteration in Articles of Association.
• Reduction of Share Capital.
• Removal of a Director before the expiry of his term.
• Removal of an Auditor before the expiry of his term.
• Voluntary winding up of the company.

6. Justify the following statements.

Question 1.
Annual General Meeting is adjourned in absence of a quorum.
Answer:

• Quorum is a minimum number of members to be present for a valid Meeting.
• As per the Companies Act, 2013, the quorum for the Annual General Meeting of a public company is as follows:

• For a private company minimum of 2 members should be present
• If the meeting is conducted without a quorum, it is considered invalid.
• In the absence of a quorum, Annual General Meeting is adjourned.
• Adjourned Meeting will be convened on the same day, same time, and the same place in the next week.

Question 2.
A notice of the meeting must be sent to all members in case of the General Meeting.
Answer:

• The Board of Directors is the authority to convene general meetings.
• The notice must be given 21 clear days before the meeting to all those who are entitled to receive it.
• The notice must be sent to all the members at their registered address in India.
• Notice can be sent by registered post, if requested by the member, charges for the same is to be paid in advance.
• Notice is also given in all leading newspapers.
• Notice is accompanied by agenda and also Annual report, Auditor report, Annual accounts, etc. in case of Annual General Meeting.

Question 3.
Extra Ordinary General Meeting is called under special circumstances.
Answer:

1. Extraordinary General Meeting is held in between two Annual General Meetings.
2. It is held when the matter is of utmost importance and it cannot be postponed till the next Annual General Meeting.
3. It can be called to make shareholders aware of the happenings in the company.
4. It can also be called to seek their approval on important and urgent matters.
5. Important and urgent matters can be:
   • Alteration in Memorandum of Association
   • Alteration in Articles of Association
   • Reduction in share capital
   • Removal of a director or auditor
   • Voluntary winding up of a company, etc.

Question 4.
Board of Directors can exercise their powers collectively through the Board Meeting.
Answer:

1. Directors collectively are called as Board of Directors.
2. The Board of Directors has to meet frequently with reference to the day-to-day working of the company.
3. All important decisions can be taken by the Board of Directors in the Board Meeting collectively.
4. Powers which can be exercised at Board Meeting are:
   • The power to fill casual vacancies in the Board.
   • To recommend the rate of dividend.
   • The power to appoint managing Director, Manager, etc.
   • To sanction a contract.
   • To give loans or invest in shares of other companies.

Question 5.
The Quorum for the Annual General Meeting of a public company depends upon the number of shareholders.
Answer:

• Quorum is a minimum number of members to be present for a valid meeting.
• As per the Companies Act, 2013, the quorum for the Annual General Meeting of a public company are as follows:

• • If the number of shareholders is up to 1000, then the required quorum is 5 members.
  • If the number of shareholders is more than 1000 and up to 5000, then the required quorum is 15 members.
  • If the number of shareholders exceeds 5000 then the quorum is 30 members for a public company.
• In the absence of a quorum, if the meeting is conducted or a resolution is passed, it is considered illegal and invalid.
• In the absence of a quorum, the meeting is adjourned to the same day, same place, and same time in the next week.

Question 6.
When a company is in financial difficulty it may call a meeting of creditors.
Answer:

• Creditors of the company include Debenture holders, Depositors, Banks, financial institutions, etc.
• When a company is in a financial crisis, it seeks the help of creditors.
• The company can request creditors to alter the rate of interest, to alter the terms of security, etc.
• Meeting of creditors can be called to compromise in a dispute with them.
• Creditors and contributors can provide financial help to the company to safeguard them and also to protect them to avoid winding up of a company.

Question 7.
As per the Companies Act, every company has to hold the Annual General Meeting.
Answer:

• Every company other than one person company must hold an Annual General Meeting once a year.
• Annual General Meeting is held to review the working of the company during the previous financial year and take an effective decision for the next year.
• It is mainly called to approve Annual Report, Auditor Report, Annual Accounts, to declare a dividend, to elect Directors, Auditors and to transact special business, if any.
• First AGM shall be held within 9 months of the closing of the first financial year of the company.
• The time interval between two Annual General Meetings should not be more than 15 months.
• If the default is made in holding AGM then the company and every officer of the company in default are punishable with a fine which may extend up to ₹ 1,00,000 and up to ₹ 5,000 per day till default continues.

7. Answer the following questions.

Question 1.
Explain the functions of a secretary related to the Annual General Meeting.
Answer:
Functions (duties) of secretary related with Annual General Meeting:
Secretary has to perform many functions related to all types of meetings like Board Meeting, Annual General Meeting, etc. He has to perform all duties in compliance with the provisions of the Act. Secretary has to perform functions before, during, and after the meeting.

Functions of a secretary related to Annual General Meeting are as follows:
Functions Before the Annual General Meeting:
(i) Preparation of Accounts and Reports:
The secretary has to ensure that the Annual Accounts, Annual Report, and Auditor Report are prepared for consideration and approval.

(ii) Board Meeting:
Board Meeting is called to transact the following business:

• To adopt Annual Accounts duly audited.
• To adopt Director’s Report
• To consider the rate of dividend
• To fix the day, date, time, and place of the Annual General Meeting.

(iii) Notice:
The secretary has to send 21 clear days’ notice of a meeting to members and auditors before the meeting along with the auditor report, annual report, annual accounts, agenda, etc. The secretary has to arrange for publishing the notice of the meeting in leading newspapers.

(iv) Chairman Speech:
The secretary has to assist the chairman in drafting his speech to be delivered at the meeting.

(v) Preliminary Arrangement:
The secretary has to make arrangements such as booking of hall, refreshments, Register of Members, Members Attendance Book, etc.

Functions During the Annual General Meeting:
(i) Attendance:
The secretary has to get signatures of members present at the meeting in ‘Members Attendance Book.’

(ii) Quorum:
The secretary should see that the required quorum is present at the meeting and informs the chairman of the meeting.

(iii) Reading of Reports:
The secretary has to read the notice, Director’s Report, and Auditor’s Report as directed by the Chairman.

(iv) Notice of Proceedings:
The secretary should take down the notes of the proceedings of the meeting. He has to draft the minutes on the basis of these notes.

(v) Assist Chairman:
The secretary has to assist the chairman during the meeting. He should provide information, documents, etc as and when needed.

(vi) Conduct of Poll:
Secretary makes arrangements for conducting the poll if it is demanded by the members.

Functions After the Annual General Meeting:
(i) Drafting Minutes:
The secretary drafts the minutes of the meeting on the basis of the notes taken down during the proceedings of the meeting.

(ii) Implementation of decisions:
The secretary instructs the concerned department for implementing the decisions taken at the meeting.

(iii) Dispatch Dividend Warrants:
The secretary has to make an arrangement to dispatch dividend warrants to the shareholders.

(iv) Filing Resolutions:
The secretary has to file the Annual Report with the Registrar. In case of a special resolution, the secretary has to file the special resolution with the Registrar within 30 days of passing that resolution.

(v) Information to Absent Members :
The secretary sends the information of the proceedings of the meeting to the absent members.

Question 2.
Explain the different types of General Meetings of a company.
Answer:
General Meetings are meetings of Equity shareholders of the company. There are two types of General Meetings:

• Annual General Meeting
• Extraordinary General Meeting.

1. Annual General Meeting (Section 96):
Every Company other than One Person Company must hold Annual General Meeting once in a year.
Purpose or Objective of Annual General Meeting:

• To review the progress and performance of the company.
• To approve annual accounts, director’s report, and auditor’s report.
• To appoint auditors and fix their remuneration.
• To declare a dividend.
• To elect new directors in place of retiring directors.
• To transact special business, if any.

Legal Provisions relating to Annual General Meeting:
(i) Time Limit:

• The time interval between two Annual General Meetings should not be more than 15 months.
• Extension of time for holding the Annual General Meeting may be given by the Registrar to the company for a period not more than three months, except for the first Annual General Meeting.
• One person company is exempted from the provision of Annual General Meeting.

(ii) Authority to Convene Annual General Meeting:
The Board of Directors is the proper authority to convene the Annual General Meeting.

(iii) Notice:
The notice must be given to all those who are entitled to receive it, at least 21 clear days in advance of the meeting. It is sent to the members at their registered address by post or through electronic mode like Email, etc.

(iv) Time, Day, and Place of Annual General Meeting:
Annual General Meeting shall be called during business hours between 9 am to 6 pm on any day other than National holidays. It can be held at the registered office or at some other place within the city or village in which the registered office of the company is situated.

(v) Quorum:
According to the Companies Act, 2013, the quorum for the Annual General Meeting of a public company is as follows:

For a private company minimum of two members should be present in person.

(vi) Adjournment:
In the absence of a quorum, Annual General Meeting stands adjourned. It will be convened on the same day, same time and the same place in the next week.

(vii) Default:
If the default is made in holding the Annual General Meeting as per the provisions of the Act or as per the instructions of the Central Government, the company and every officer of the company who is in default are punishable with a fine which may extend up to ₹ 1,00,000/-. If the default continues fine may extend up to ₹ 5,000 per day till the default continues.

2. Extra-Ordinary General Meeting (Section – 100):
Meaning:
It is a meeting which is called in between two Annual General Meetings under special circumstances, which cannot be postponed till the next Annual General Meeting. The matters discussed under this meeting is of utmost importance and urgent by nature.

Purpose or Objectives of Extra-Ordinary General Meeting:
The main purpose behind calling this meeting is to make shareholders aware of the happenings in the company or to seek their approval on some urgent and important matters of the company.

• Alteration in the Memorandum of Association.
• Alteration in Articles of Association.
• Reduction of Share Capital of the company.
• Removal of a Director before the expiry of his term.
• Removal of an Auditor before the expiry of his term.
• Voluntary winding up of the company.

Legal Provisions relating to Extra Ordinary General Meeting:
(i) Time for holding a meeting:
Extra Ordinary General Meeting is held between two Annual General Meetings under special circumstances. It can be held at any time as per the requirements of the company.

(ii) Authority to Convene:

• The Board of Directors has the right to call an Extra-Ordinary General Meeting by sending a proper notice to the shareholders.
• Extra-Ordinary General Meeting can be called by the members holding at least 1/10th of the paid-up capital or 1/10th of voting power in the company. Board must call Extra-Ordinary General Meeting within 45 days of receiving the requisition from the members.
• If the Board fails to call such a meeting then the requisitionists themselves call this meeting within 3 months from the date of deposit of the requisition. The company shall pay all the expenses incurred for holding such meetings by the requisitionist.
• National Company Law Tribunal (NCLT) can order such meetings on its own or at the request of a director or any members having voting rights.

(iii) Notice:
The notice must be given to all those who are entitled to receive it, at least 21 clear days in advance of the meeting. It is sent to the members at their registered address by post or through electronic mode like Email, etc.

(iv) Quorum:
According to the Companies Act, 2013, the quorum for the Annual General Meeting of a public company is as follows:

For a private company minimum of two members should be present in person.

Question 3.
Explain the different types of Director’s Meetings.
Answer:
Director’s meeting:
Directors collectively are called as Board of Directors. They meet regularly to discuss and decide upon company matters, implementation of plans and review the progress made by the company.

(i) Board Meeting (Section 173):
It is a meeting of the Board of Directors. The Board of Directors has to meet frequently with reference to day to day working of the company. The Board of Directors can exercise their powers collectively through the Board Meeting.

Legal Provisions relating to Board Meeting:
(a) Authority to Convene:
The chairman of the Board is the proper authority to call the Board Meeting.

(b) Number of Board Meetings:

• First Board Meeting shall be held within 30 days of the date of its incorporation.
• Subsequently, there should be four meetings in a year.
• The gap between the two meetings should not be more than 120 days.
• At least one Board meeting should be held in 6 months in case of one person company, small company, and dormant company.
• The gap between two meetings should not be more than 90 days in the case of one person company.

(c) Virtual Meeting/Video Conferencing:
If there is any urgency to call Board Meeting and practically not possible for Directors to attend the meeting in a short notice, so with the help of technology, a virtual meeting can be held. The meetings are recorded and active participation of Directors is also possible through video conferencing. Certain special and confidential matters cannot be dealt with through video conferencing as per the directions of the Central Government.

(d) Notice [Section 173(3)]:
The notice of every Board Meeting must be given to every director at least 7 days before the meeting at his registered address along with an agenda of the meeting.
It can also be sent by post or by hand delivery or by E-mail.
If a company fails to send notice within a given time, then every officer in default shall be liable to a penalty of Rs. 25,000.

(e) Quorum (Section – 174)

• The quorum for the Board Meeting is 1/3rd of the total number of directors or two directors whichever is higher.
  Any fraction should be rounded to one.
• Interested directors (personal interest in any matter) are not included in the quorum.

(f) Adjournment:
The meeting of the Board of directors can be adjourned in the absence of a quorum.
The adjourned meeting can be held on the same day, same time and the same place in the next week.

(ii) Committee Meeting:

• The Board of Directors may from the committee and delegate some of its powers to them.
• This committee should consist of only directors. The delegation of such powers to committees is to be authorized by Articles of Association and should be subject to the provisions of the Companies Act.
• A meeting of Allotment Committee, Transfer Committee, etc are examples of Committee Meeting.

Activity 1 (Textbook Page No. 123)

Visit the website of any public company and study its Annual Report/Director’s Report.
Answer:
[Note: Students should do this activity by themselves with the help of the internet.]

Activity 2 (Textbook Page No. 127)

Enlist the functions of a Secretary related to an Extra-Ordinary Meeting.
Answer:
Functions of Secretary Relating to Extra Ordinary General Meeting:
(i) Before the Meeting:

• Time of Holding: To decide the date, time, place, and agenda for holding the meeting in consultation with the chairman of the company and to convene the Board Meeting for finalization of these things by passing a resolution to that effect.
• Drafting of Resolution: To draft the proposed resolution and explanatory statements and to get them approved by the board.
• Notice: To draft the notice of the meeting and arrange to get the same printed together with the explanatory statements, proxy forms, and admission cards. To send the notice with agenda to all the members, at least 21 days before the meeting.
• Public Notice: The notice is also published in the leading newspapers for the information of the general public.
• Notice to Stock Authorities: If the shares are listed on the stock exchange, a notice of the meeting is sent to stock exchange authorities too.
• Proxy: To verify proxy forms received and enter them in the proxy register.
• Preparing Documents: The important documents, records, Books, etc. are kept ready for reference during the meeting.

(ii) During the Meeting:

• Checking: To check the admission card of the members.
• Attendance: To take attendance of members.
• Ascertaining Quorum: To ascertain the quorum.
• Reading Notice: To read the notice convening meeting.
• Assist Chairman: To assist the chairman, by providing necessary information, records documents.
• Notes of Proceedings: To make notes of the proceedings of the meeting.

(iii) After the Meeting:

• Drafting Minutes: To draft the minutes of the meeting and enter the same in the Minute Book.
• Signed by the Chairman: To get Minutes signed by the chairman of the meeting.
• Filing of Resolution: To file the certified copy of the resolution passed at the meeting, to the Registrar of Companies.
• Sending Intimation: To send intimation to the concerned persons.
• Implementations: To carry out decisions taken at the meeting.