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Study the following case/situation and express your opinion.Violet Ltd. company plans to raise 10 crores by issuing debentures. The Board of Directors have some queries. Please advise them on the - Secretarial Practice

Short Note

Study the following case/situation and express your opinion.
Violet Ltd. company plans to raise 10 crores by issuing debentures. The Board of Directors have some queries. Please advise them on the following:
As the company is offering debentures to its members, can such debentures have normal voting rights?

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Solution

As per the Companies Act, 2013, the company cannot issue debentures with voting rights. Debenture holders are the creditors of the company. So, they don't have normal voting rights. They can vote only matters related to them.

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APPEARS IN

Balbharati Secretarial Practice 12th Standard HSC Maharashtra State Board
Chapter 4 Issue of Debentures
Exercise Q.3 | Q 2.3 | Page 79
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