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

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MCQ
True or False

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

Options

  • True

  • False

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Solution

True

Concept: Procedure for Issue of Debentures
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Chapter 4: Issue of Debentures - Exercises [Page 76]

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Balbharati Secretarial Practice 12th Standard HSC Maharashtra State Board
Chapter 4 Issue of Debentures
Exercises | Q 1. D) 4. | Page 76

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.
Time period within which the procedure for allotment of debenture is to be completed from the date of receipt of applications.


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:
Whom does the company appoint to protect the interest of debenture holders?


Answer in one sentence:
Within what period should secured debentures be redeemed?


Answer in one sentence:
When should a company appoint a credit rating agency?


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. Obtain Credit Rating.
b. Entry in register of debenture
c. Receive application with money


Arrange in proper order.
a. Issue debenture certificate
b. Issue prospectus
c. Open bank Account


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?


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?

Elaborate on the process for the issue of debentures.


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