By going through these Maharashtra State Board Secretarial Practice 12th Commerce Notes Chapter 6 Correspondence with Members students can recall all the concepts quickly.
Maharashtra State Board Class 12 Secretarial Practice Notes Chapter 6 Correspondence with Members
→ The company collects owned capital by issuing shares to its members/shareholders.
→ Shareholders are the real owners of the Company.
→ Secretary acts as a Public Relations Officer and does all the correspondences with the members on behalf of the Company.
Secretary has to write letters to the members on several occasions-
- Allotment Letter
- Regret Letter
- Issue of Share Certificate
- Issue of Bonus Shares
- Execution of Right Issue
- Letter for Payment of Dividend
- Dividend Mandate
- Approval of Transfer of Shares
- Refusal of Transfer of Shares
- Notice and Agenda of General Meeting
- Notice of loss of share certificate
- Reply to the queries raised by the members
- Letters to legal representatives regarding Transmission of Shares
→ Various points like providing correct information, use of technology, use of lucid language, prompt response, maintain secrecy, etc. is to be considered by the secretary in correspondence with members.
Issue of Share Certificate-
- Registered Document
- Title to the shares issued by the company
- Duly stamped and signed by two directors and countersigned by the secretary under the common seal of the company
- Issued or dispatch share certificate to the allottee within two months after allotment of shares
- Send by the registered post
- Contains details like name of the shareholder, number of shares held with a distinctive number, etc
Payment of Dividend-
- Dividend is distributed between the shareholders of the company
- Dividend is recommended by Board of Directors, declared and approved by shareholders in Annual
Payment of Dividend:
- Dividend Warrant
- Electronically (ECS, NEFT, RTGS)
The letter contains a number of equity shares held, Dividend warrant number, gross dividend, TDS if any, the net amount of dividend, etc.
Issue of Bonus Share-
- Issued to fully paid-up shares
- Given free of cost and also known as capitalization of reserves
- Contains a total number of shares held, ratio decided, bonus share issued and credited to the Demat account with client ID no. date of credit, etc.
- Sent to a member who has query/ raised doubt regarding low rate of dividend
- Contains or specifies reasons for the low rate of dividend.