Appointment of trustee for depositors required before inviting secured deposits; consent, trust deed and disqualification rules apply. A trustee for depositors must be appointed and give written consent before issuing any circular or advertisement inviting secured deposits, and the company must execute a deposit trust deed in Form DPT-2 at least seven days prior. Persons are disqualified from appointment if they are directors, KMP, officers, employees or depositors of the company or its group companies; indebted to the company or group companies; have material pecuniary relationships with the company; have entered guarantee arrangements in respect of debts secured by the deposits; or are related to such persons. Trustees may not be removed after issuance of the circular except with consent of all directors present, with at least one independent director present where required.
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Provisions expressly mentioned in the judgment/order text.
Appointment of trustee for depositors required before inviting secured deposits; consent, trust deed and disqualification rules apply.
A trustee for depositors must be appointed and give written consent before issuing any circular or advertisement inviting secured deposits, and the company must execute a deposit trust deed in Form DPT-2 at least seven days prior. Persons are disqualified from appointment if they are directors, KMP, officers, employees or depositors of the company or its group companies; indebted to the company or group companies; have material pecuniary relationships with the company; have entered guarantee arrangements in respect of debts secured by the deposits; or are related to such persons. Trustees may not be removed after issuance of the circular except with consent of all directors present, with at least one independent director present where required.
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