April 2024
Beginner
760 pages
39h 4m
English
book
Fernando's Business Ethics and Corporate Governance, 3rd Edition
by K P Muraleedharan, E K Satheesh
Content preview from Fernando's Business Ethics and Corporate Governance, 3rd Edition
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Chapter 18
Shareholders and other Stakeholders in Corporate Governance 627
Depository and Dematerialisation
Shares are traditionally held in physical or paper form. This method has its own inherent
weaknesses such as loss/theft of certicates, forged/fake certicates, cumbersome and time
consuming procedure for transfer of shares, etc. Therefore, to eliminate these weaknesses, a
new system called “Depository System” has been established.
A depository is a system which holds shares in the form of electronic accounts in the same
way a bank holds one’s money in a savings account.
Depository system provides the following advantages to an investor: ...
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