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

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Question

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

Options

  • True

  • False

MCQ
True or False
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Solution

True

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

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

RELATED QUESTIONS

Select the correct answer from the option given below and rewrite the statement:
The details of allotment of Debentures must be entered in ___________.


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.
Debenture trustees are appointed to protect the interest of shareholders.


Find the odd one.


Complete the sentence.
Secured debentures should be redeemed within  ____________.


Complete the sentence.
To stop a company from incurring further liabilities, the Debenture trustee can approach ____________.


Complete the sentence.
On receipt of application and money, the procedure for allotment of debentures should be completed within __________.


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?


Arrange in proper order.
a. Obtain Credit Rating.
b. Entry in register of debenture
c. Receive application with money


Arrange in proper order.

  1. Issue debenture certificate
  2. Issue prospectus
  3. 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 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:
Within what period should company issue debenture certificate?


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