Balbharti Maharashtra State Board Class 12 Secretarial Practice Important Questions Chapter 6 Correspondence with Members Important Questions and Answers.
Maharashtra State Board 12th Secretarial Practice Important Questions Chapter 6 Correspondence with Members
1A. Select the correct answer from the options given below and rewrite the statements.
Question 1.
Shareholders are ____________ of the company.
(a) Owners
(b) creditors
(c) loan givers
Answer:
Owners
Question 2.
Important decisions need approval of ____________ at the meeting.
(a) auditors
(b) shareholders
(c) directors
Answer:
shareholders
Question 3.
Secretary writes letter to members as ____________
(a) auditor
(b) Public Relations Officer
(c) Director
Answer:
Public Relations Officer
Question 4.
____________ shares are issued to existing equity shareholders.
(a) deferred
(b) preference
(c) bonus
Answer:
bonus
Question 5.
Polite and prompt correspondence by secretary creates ____________ of the company.
(a) goodwill
(b) prestige
(c) image
Answer:
goodwill
Question 6.
Secretary is a ____________ of confidential matter.
(a) caretaker
(b) custodian
(c) auditor
Answer:
custodian
1B. Match the pairs.
Question 1.
| Group ‘A’ | Group ‘B’ |
| (1) Secretary | (a) Registered Document |
| (2) Electronic Mode | (b) Fluctuating rate of dividend |
| (3) Share Certificate | (c) Correspondence with members |
| (4) Reply Letter | (d) Dividend Warrant |
| (5) Bon as Share | (e) Payment of Dividend |
| (f) Existing Equity Shareholder | |
| (g) Bearer Document | |
| (h) Low rate of dividend | |
| (i) Fluctuations in the market | |
| (j) Correspondence with Bank |
Answer:
| Group ‘A’ | Group ‘B’ |
| (1) Secretary | (c) Correspondence with members |
| (2) Electronic Mode | (e) Payment of Dividend |
| (3) Share Certificate | (a) Registered Document |
| (4) Reply Letter | (h) Low rate of dividend |
| (5) Bon as Share | (f) Existing Equity Shareholder |
1C. Write a word or term or a phrase that can substitute each of the following statements.
Question 1.
Return of investment in shares.
Answer:
Dividend
Question 2.
Warrant attached with notice of dividend.
Answer:
Dividend warrant
Question 3.
Title to the shares issued by the company.
Answer:
Share Certificate
Question 4.
A portion of profits is distributed to the shareholders of the company.
Answer:
Dividend
Question 5.
The letter containing reasons for the low rate of dividends.
Answer:
Reply Letter
1D. State whether the following statements are True or False.
Question 1.
Secretary should always provide correct, updated, and tactful information to the members.
Answer:
True
Question 2.
Secretary should disclose confidential information to the members.
Answer:
False
Question 3.
Share certificates must be duly stamped and signed under the common seal of the company.
Answer:
True
Question 4.
The dividend is declared and approved in General Meeting.
Answer:
False
Question 5.
A dividend warrant is a written order given by the company to its banker to pay the amount mentioned in it to the shareholder whose name is specified therein.
Answer:
True
Question 6.
The dividend is to be paid to shareholders within 30 days from the date of declaration.
Answer:
False
1E. Find the odd one.
Question 1.
Allotment letter, Allotment slip, Refund order
Answer:
Refund order
Question 2.
Dividend Coupon, Dividend warrant, Transfer receipt
Answer:
Transfer receipt
1F. Complete the sentences.
Question 1.
Shareholders are the ____________ of the company.
Answer:
owners
Question 2.
The role of secretary while writing to members is of ____________
Answer:
Public Relations Officer
Question 3.
Share Certificate must be signed by at least ____________ directors.
Answer:
2
Question 4.
Dividend is the portion of ____________
Answer:
Profits
Question 10.
Bonus Shares issued are credited to Shareholders ____________ Account.
Answer:
Demat
1G. Select the correct option from the bracket.
Question 1.
| Group ‘A’ | Group ‘B’ |
| (1) ………………….. | (a) Directors and Members |
| (2) …………………. | (b) Registered Post |
| (3) Correspondence | (c) ……………………. |
| (4) …………………. | (d) Payment of Dividend Electronically |
(Written communication, Share Certificate, Secretary, ECS)
Answer:
| Group ‘A’ | Group ‘B’ |
| (1) Secretary | (a) Directors and Members |
| (2) Share Certificate | (b) Registered Post |
| (3) Correspondence | (c) Written communication |
| (4) ECS | (d) Payment of Dividend Electronically |
1H. Answer in one sentence.
Question 1.
What is politeness?
Answer:
Politeness means the use of courteous language. A courteous letter shows sympathy, respect, and mutual understanding.
Question 2.
What is the time period to dispatch the share certificate by the company?
Answer:
The company must dispatch a share certificate to the allottee within two months after the allotment of shares.
Question 3.
What is the time limit to pay the dividend?
Answer:
The dividend is to be paid to the shareholders within 30 days from the date of declaration.
1I. Correct the underlined word and rewrite the following sentences.
Question 1.
Secretary should follow relevant provisions of the Companies Act, 1986.
Answer:
Secretary should follow relevant provisions of the Board of Directors.
Question 2.
Share Certificate must be countersigned by the shareholder.
Answer:
Share Certificate must be countersigned by the Board of Directors.
Question 3.
The interim dividend is declared by shareholders.
Answer:
The interim dividend is declared by Equity.
Question 4.
Interim Dividend is paid through cash.
Answer:
Interim Dividend is paid through electronic mode.
Question 5.
Rights shares are the shares given to existing shareholders free of cost.
Answer:
Bonus shares are the shares given to existing shareholders free of cost.
1J. Arrange in proper order.
Question 1.
(a) Reply Letter
(b) Issue of Share Certificate
(c) Payment of Dividend
Answer:
(a) Issue of Share Certificate
(b) Payment of Dividend
(c) Reply Letter
2. Explain the following terms/concepts.
Question 1.
Correspondence with Members
Answer:
Correspondence with members means communicating the decisions and information of the management to the members through letters. The letter not only includes casual informing but also sending replies to the letters.
Question 2.
Share Certificate
Answer:
Share Certificate is a registered document. It is a title of shares issued by the company under the common seal of the company. It should be duly stamped and signed by two directors and countersigned by the secretary of the company.
3. Answer in brief.
Question 1.
Explain Secretary acts as a link between the Directors and the Members.
Answer:
- A secretary is an employee in the organization. The secretary is responsible for all the compliances with statutory and regulatory requirements.
- The Secretary communicates the decisions and information taken by the management to the members through correspondence.
- The secretary also deals with government agencies and private institutions.
- The secretary replies to the queries raised by the members. Complaint letters should be promptly attended without any delay by the secretary.
- The secretary should provide correct and updated information to the members as and when demanded.
Question 2.
Write a note on Payment of dividend.
Answer:
- The dividend is the portion of the company’s profits that is distributed among the shareholders of the company.
- The dividend is paid through the Dividend Warrants or through Electronic Mode i.e. ECS, NEFT, etc. to the registered shareholders.
- The rate of dividend is recommended by the Board of Directors.
- It is declared and approved by shareholders in the Annual General Meeting.
- The dividend is to be paid to the shareholders within 30 days from the date of declaration.
- The letter related to the payment of the dividend is sent to the concerned shareholders. The letter contains detailed information regarding the payment of dividends.
4. Justify the following statements.
Question 1.
Share Certificate is a registered document.
Answer:
- Share Certificate is the title to the shares issued by the company.
- It is duly stamped and signed by two directors and countersigned by the directors under the common seal of the company.
- It contains all the details regarding the issue of shares, shareholders’ names, number of shares issued, share certificate number, etc.
- It is issued or dispatched to the allottee within two months after allotment of shares.
- Thus, it is rightly said that a share certificate is a registered document.
Question 2.
Registered shareholders get dividends through dividend warrants or electronically.
Answer:
- The dividend is the portion of profits of the company which is distributed to the shareholders of the company.
- Dividend can be paid through dividend warrant or by means of electronic mode i.e. ECS or NEFT, etc only to the registered shareholders.
- The dividend is paid through dividend coupons to share warrant holders. Share warrant is a bearer document of title to shares.
- The letter contains a number of equity shares held, dividend warrant number, gross dividend, TDS if any, the net amount of dividend, etc.
- Thus, it is rightly said that the registered shareholders get dividends through dividend warrants or electronically.
Question 3.
Reply letter contains or specifies the reasons for the low rate of dividend.
Answer:
- Reply letter is the answer given to the query raised by the member.
- The letter is sent to the concerned member who is not satisfied with the payment of dividend made by the company.
- The letter contains reasons for the lowering down of the rate of dividend.
- The secretary has to convince the shareholders that the dividend is lowered due to void reasons and assure that company will overcome the situation.
- Thus, it is rightly said that a reply letter contains or specifies the reasons for the low rate of dividend.
5. Study the case/situation and express your opinion.
1. As a Secretary of Networks limited.
Question (a).
Give any 3 occasions where he will have to correspond with members.
Answer:
Secretary will correspond with members on the following occasions:
- Issue of Share Certificate;
- Payment of Dividend;
- Reply to query letter
Question (b).
3 points of precautions he will take while drafting a letter.
Answer:
Correct Information, Lucid language, and the image of the company have to be borne in mind.
Question (c).
Whether he should take Director’s approval before drafting any letter.
Answer:
Yes, Director’s approval is a must for major matters.
2. Comfort Motors Ltd. has allotted shares to Mr. Jayant Modi.
Question (a).
Will Comfort Motors Ltd. send a letter to Mr. Jayant Modi when demanded?
Answer:
Yes, when Mr. Jayant Modi demands, the company will send the letter for the issue of the share certificate.
Question (b).
How will the company send the share certificate?
Answer:
The company will send the share certificate through registered post.
Question (c).
What information should the letter of issue of share certificate contain?
Answer:
The letter will contain information such as folio no., share certificate no., no. of shares, etc.
3. Mr. Ashish Rai has applied for 100 shares of ₹ 10 each payable as ₹ 2 per share on application, ₹ 4 on the allotment, and ₹ 4 on 1st and final call.
Question (a).
Is there any compulsion that he get the number of shares he has applied for?
Answer:
No, there is no such compulsion to get the shares. he has applied for. In case of oversubscription he may or may not be allotted shares.
Question (b).
What is the amount he will have to pay at the time of application?
Answer:
Mr. Ashish will have to pay ₹ 200/- (₹ 2/- x 100 shares applied for) at the time of application.
Question (c).
What is the maximum amount he will have to pay for the above shares?
Answer:
₹ 1000/- (₹ 10 * 100 shares) is the maximum amount that Mr. Ashish will have to pay as a total amount for the shares.
4. Anmol Steel Industries Ltd. wants to pay dividends to the registered shareholders.
Question (a).
Who recommends and approves the rate of dividend?
Answer:
The Directors recommends and shareholders approve the rate of dividend.
Question (b).
How will the dividend be paid to the shareholders?
Answer:
The dividend can be paid through a dividend warrant or through electronic mode i.e. ECS, NEFT.
Question (c).
Is the letter sent to the registered shareholders before the payment of the dividend?
Answer:
Yes, the companies send the letter of payment of dividend.
5. Mr. Raj She seeks information about interim dividends as heard from one of his fellow shareholders.
Question (a).
What does the Secretary refer to?
Answer:
The Secretary will refer to the date of dividend notice sent to the members
Question (b).
Does he need to give the details of the interim dividend?
Answer:
Yes, he can give the date and details sent.
Question (c).
After getting the details does Mr. Raj have any document that he can refer to as proof?
Answer:
Mr. Rajat can verify with the Passbook/ statement as regards the amount credited.
6. Yash Industries Ltd. is issuing bonus shares.
Question (a).
Can the company issues bonus shares to all the shareholders?
Answer:
No, the company can issue bonus shares to only existing shareholders of the company.
Question (b).
Is it necessary for the shareholders to pay a certain amount for bonus shares?
Answer:
No, bonus shares are fully paid up shares given by the company as a gift.
Question (c).
How are the shareholders informed regarding the issue of bonus shares?
Answer:
Bonus Shares are credited to shareholders Demat Account or share certificate is issued if shares are held in physical form.
7. Mr.Anand Khot has complained of a low rate of dividends. As a Secretary,
Question (a).
Is it necessary to reply to the complaint letter?
Answer:
Yes, it is a must for the Secretary to send a reply letter.
Question (b).
Is it necessary to give reasons for the low rate of dividends?
Answer:
Yes, reasons, as discussed in the AGM, can be written in the letter in order to convince about the low rate of dividend.
Question (c).
Which points he has to keep in mind while drafting the above letter?
Answer:
Prompt response, correct information, politeness, and image of the company are some of the major points to be considered while drafting the letter.