Q.A depositor of a company is, in the eyes of law, a ____ of the company. (A) Owner
(B) Creditor
(C) Trustee
(D) Employee

A depositor lends the company money for a fixed period at a fixed rate of interest, which is exactly the relationship of a lender to a borrower, not of an owner to the business.

A depositor places money with the company as a fixed deposit under Sections 73 to 76 of the Companies Act, 2013, in exchange for interest and repayment of the principal on the date the Deposit Receipt states.

(A) Owner describes a member holding shares, who has a stake in the company's ownership and profits — a depositor holds neither, so this is incorrect.

(B) Creditor is exactly the depositor's legal position — a lender to whom the company owes a debt — correct.

(C) Trustee describes someone holding property or authority on behalf of another; a depositor holds no such role in relation to the company — incorrect.

(D) Employee describes someone in the company's service drawing a salary; a depositor's relationship has nothing to do with employment — incorrect.

Students sometimes confuse a depositor with a member because both hand money to the company — remember a member buys ownership (shares), while a depositor lends money and remains only a creditor, with no voting right or ownership stake.