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Justify the following statement: A company has to create charge on its assets for issuing secured debentures.

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प्रश्न

Justify the following statement:

A company has to create charge on its assets for issuing secured debentures.

औचित्य
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उत्तर

  1. Debentures can be secured. The company's property may be charged as collateral for the loan. The security may be for a specific asset (fixed charge) or for the entire asset (floating charge).
  2. As per its provisions, the company has to create a charge on the assets of the company, its subsidiary company or holding company.
  3. The value of the charge should be adequate to cover the entire value of debentures issued and interest to be paid on it.
  4. If a government company issues secured debentures which has central or state government’s guarantee, then it need not create any charge on its assets. Hence, a company has to create charges on its assets for issuing secured debentures.
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Debentures Trustees
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अध्याय 4: Issue of Debentures - Justify the following statements

संबंधित प्रश्न

Select the correct answer from the option given below and rewrite the statement:
A company which issues prospectus or invites more than 500 persons to buy its debenture has to appoint ____________.


The contract between company and Debenture trustees of companies is called as _____________.


Write a word or a term or a phrase which can substitute the following

statement.
Institution appointed by company to protect the interest of debenture holders.


Write a word or a term or a phrase which can substitute the following

statement.
The document which contains terms and conditions agreed upon by the company and the Debenture trustees.


Write a word or a term or a phrase which can substitute the following

statement.
Institution which redresses grievances of debenture holders.


Find the odd one.


Find the odd one.


Complete the sentence.
A legal instrument conveying the assets of a company to the Debenture trustees is called  _______________.


Complete the sentence.
To protect the interest of Debenture holders, a company appoints ______.


Answer in one sentence:
Name the document which is an agreement between the debenture trustee and company?


Answer in one sentence:

Who has the authority to create charge on assets of a company?


Correct the underlined word and rewrite the following sentence:

The details of debentureholders are entered in the Register of Members.


Correct the underlined word and rewrite the following sentence:

Secured debentures must be redeemed within 15 years from the date of its issue.


Correct the underlined word and rewrite the following sentence:
A company issuing irredeemable debentures must create a charge on the assets of the company.


Explain the following term/concept.

Debenture Certificate


Justify the following statement:

Debenture trustees are appointed by a company issuing debentures.


Give one word or phrase for the following sentence:

The company enters into a contract with one or more debenture trustees.


Give one word or phrase for the following sentence:

What are debenture trustees?


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