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प्रश्न
Study the following case/situation and express your opinion.
| DDS Financial plans to raise ₹10 crores by issuing Secured, Non-convertible debentures. However, as per the Articles of Association, the Board of Directors has the authority only to raise up to 5 crores. They are also considering whether to go for a private placement or make a public offer. Please advise them on the following: |
- What can be the maximum tenure of the debentures to be issued?
- Is the proposed issue within the borrowing powers of the Board?
- Within what period should the company issue a Debenture certificate?
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उत्तर
- The maximum tenure of the debentures to be issued is of 10 years. Only certain companies permitted by the Ministry of Corporate Affairs, Central Government, or RBI can issue debentures beyond a period of 10 years but not exceeding 30 years.
- No. The proposed issue is not within the borrowing powers of the board. The board can use its borrowing power up to the limit permitted by the Articles of Associations permits only up to ₹ 5 crores. In case, the Board wants to increase its borrowing power, it has to get approval from shareholders by passing a special resolution in a general meeting.
- A debenture certificate is a document issued by a company as evidence of debts to the holder. As per the Companies Act, 2013, the company has to issue a debenture certificate within 6 months of the allotment of debentures.
संबंधित प्रश्न
A company cannot issue ______ with voting rights.
Select the correct answer from the option given below and rewrite the statement:
The details of allotment of Debentures must be entered in ___________.
Select the correct answer from the option given below and rewrite the statement:
Procedure for allotment of Debenture should be completed within ___________ from the date of receipt of applications.
Write a word or a term or a phrase which can substitute the following
statement.
Time period within which the procedure for allotment of debenture is to be completed from the date of receipt of applications.
Write a word or a term or a phrase which can substitute the following statement.
Period within which debenture certificate must be issued by a company.
State whether the following statement is or false.
Debenture trustees are appointed to protect the interest of shareholders.
Complete the sentence.
Secured debentures should be redeemed within ____________.
Complete the sentence.
For public issue of debentures of ₹100 crores, minimum subscription should be ______.
Answer in one sentence:
Within what period should be debenture certificate be issued?
Answer in one sentence:
What is the minimum subscription that a company must collect for an issue of debentures of 100 crores?
Answer in one sentence:
When should a company appoint a credit rating agency?
Correct the underlined word and rewrite the following sentence:
Return on investment on debenture is dividend.
Arrange in proper order.
a. Hold Board Meeting for allotment
b. Issue debenture certificate
c. Receive application with money
Study the following case/situation and express your opinion.
Rose limited company proposes to issue debenture to the public to raise funds. After discussions, the board of directors have decided to issue secured, redeemable, non-convertible debentures with a tenure of ten years. Please advise the board on the following matters:
Can the tenure of debentures be less than ten years?
Study the following case/situation and express your opinion.
DDS financial plans to raise 10 crores by issuing secured non-convertible debentures. However, as per the Articles of Association, the board of directors have authority only to raise up to 5 crores. They are also considering whether to go for private placement or make public offer. Please advise them on the following:
Is the proposed issue within the borrowing powers of the board?
Study the following case/situation and express your opinion.
DDS financial plans to raise 10 crores by issuing secured non-convertible debentures. However, as per the Articles of Association, the board of directors have authority only to raise up to 5 crores. They are also considering whether to go for private placement or make public offer. Please advise them on the following:
Within what period should company issue debenture certificate?
Elaborate on the process for the issue of debentures.
