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State whether the following statement is or false.Debenture trustees are appointed to protect the interest of shareholders. - Secretarial Practice

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Question

State whether the following statement is or false.
Debenture trustees are appointed to protect the interest of shareholders.

Options

  • True

  • False

MCQ
True or False
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Solution

False

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Procedure for Issue of Debentures
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Chapter 4: Issue of Debentures - Exercises [Page 77]

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Balbharati Secretarial Practice [English] Standard 12 Maharashtra State Board
Chapter 4 Issue of Debentures
Exercises | Q 1. D) 8. | Page 77

RELATED QUESTIONS

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.

Period within which debenture certificate must be issued by a company.


Write a word or a term or a phrase which can substitute the following statement.
Authority which has power to issue debentures.


State whether the following statement is or false.
Debentures holders are paid interest.


State whether the following statement is or false.
Company has to create a charge on its assets when it issues secured debentures.


Complete the sentence.
Return on investment on debenture is called ________.


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:
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.


Correct the underlined word and rewrite the following sentence:
Procedure for allotment of debentures should be completed within 90 days from date of receipt of application.


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.

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:
  1. What can be the maximum tenure of the debentures to be issued?
  2. Is the proposed issue within the borrowing powers of the Board?
  3. Within what period should the company issue a Debenture certificate?

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?


Explain briefly the procedure for issue of debentures.


Study the following case/situation and express your opinion.

Violet Ltd. company plans to raise 10 crores by issuing debentures. The Board of Directors has some queries. Please advise them on the following:
  1. Can the company issue unsecured debentures?
  2. Can they issue irredeemable debentures?
  3. As the company is offering debentures to its members, can such debentures have normal voting rights?

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