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प्रश्न
Study the following case/situation and express your opinion.
| Rose limited company proposes to issue debentures to the public to raise funds. After discussions, the board of directors has decided to issue secured, redeemable, non-convertible debentures with a tenure of ten years. Please advise the board on the following matters: |
- Should the company appoint a debentures trustee?
- Should the company create a charge on its assets?
- Can the tenure of debentures be less than ten years?
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उत्तर
- Yes. The company should appoint a Debentures trustee. This is because, in the above case, Rose Limited Company proposes to issue debentures to the public to raise funds. Thus, the company issuing debentures must appoint one or more debentures trustees.
- Yes. The company should create a charge on tangible assets. The charge is created in the favour of the Debenture Trustee and they become the custodian of the assets on which the charge has been created.
- Secured debentures can be redeemed for a maximum of 10 years. Less than ten years is possible. It demonstrates a company's strong liquidity position.
APPEARS IN
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 ____________.
Match the pairs.
| Group 'A |
Group 'B' |
|
a) Debenture Trustees |
1) Power to issue debentures |
|
b) Debenture holders |
2) Protects interest of shareholders |
|
c) Charge on assets |
3) Secured debentures |
|
d) Board of Directors |
4) NCLT |
|
e) Debenture certificate |
5) No voting rights |
|
6) Unsecured debentures |
|
|
7) Protects interest of debenture holders |
|
|
8) Voting rights |
|
|
9) Proof of ownership of shares |
|
|
10) Issued within 6 months of allotment of debentures |
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.
Find the odd one.
Complete the sentence.
To protect the interest of Debenture holders, a company appoints ______.
Complete the sentence.
Authority to create charge on company’s assets is with the ______.
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:
Debenture certificates are issued within 3 months of allotment of debentures.
Explain the following term/concept.
Debenture Certificate
Explain the following term/concept.
Charge on assets.
Answer in brief.
What is debenture trust deed?
Who are debentures trustee?
Justify the following statement:
A company has to create charge on its assets for issuing secured debentures.
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.
