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Justify the following statement:A company can issue only certain types of debentures. - Secretarial Practice

Short Note

Justify the following statement:
A company can issue only certain types of debentures.

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Solution

Justification: 
(1) A company can issue secured as well as unsecured debentures. It can also issue non-convertible debentures or debentures which can be converted fully or partly into equity shares.
(2) The Board of Directors of a company have the authority to issue debentures. All debentures are redeemable i.e, have to be repaid.
(3) The company can issue debentures to its members or make a public offer or offer it even through private placement.
(d) Thus, it is rightly justified that, a company can issue only certain types of debentures.

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APPEARS IN

Balbharati Secretarial Practice 12th Standard HSC Maharashtra State Board
Chapter 4 Issue of Debentures
Exercise Q.5 | Q 3 | Page 79
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