Q.Write a letter to the debenture holder regarding payment of interest electronically.

A letter to a debenture holder regarding electronic payment of interest is a formal correspondence from the secretary confirming that the periodic interest due on the debentures has been remitted directly to the holder's registered bank account, stating the amount, period and transaction details. The properly formatted specimen letter is the answer.

Debenture holders are creditors of the company and are entitled to a fixed rate of interest at regular intervals, payable whether or not the company earns a profit. Increasingly this interest is paid electronically (NEFT/ECS/RTGS) straight into the holder's registered bank account, which is faster and safer than warrants. The secretary sends a covering/intimation letter with full details of the payment.

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