Question:

Company has to appoint _______ to protect the interest of depositors.

Show Hint

Always match the trustee to the type of instrument. 'Debenture trustees' are for debenture holders, and 'Deposit trustees' are for depositors. This helps avoid confusion between similar-sounding roles.
  • Debenture trustees
  • Deposit trustees
  • Credit Rating Agency
Hide Solution
collegedunia
Verified By Collegedunia

The Correct Option is B

Solution and Explanation

Step 1: Identify the key parties involved. The question is about protecting the interests of 'depositors', who place fixed deposits with a company. Step 2: Analyze the roles of the options provided. Debenture trustees are appointed to protect the interests of debenture holders. Deposit trustees are appointed specifically to safeguard the interests of individuals who have deposited money with the company. They act as a liaison between the company and the depositors. A Credit Rating Agency assesses the financial health and creditworthiness of a company but does not directly protect depositors' interests. Step 3: Match the role to the requirement. The correct entity appointed to protect depositors is the Deposit trustee.
Was this answer helpful?
0
0

Questions Asked in Maharashtra Class XII exam

View More Questions