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State, with reasons, whether the following statements are True
or False (Any THREE) :
Convertible debentures can be converted into equity shares.
Concept: Issue of Debentures with Terms of Redemption
Select the correct answer from the possible choices given below and rewrite the statement :
A company can accept deposits from the existing shareholders and debenture holders upto __________ of the total paid-up capital and free reserves.
Concept: Deposits
A company can issue ______ convertible debentures.
Concept: Provisions for Issue of Debentures as per Companies Act, 2013
Debenture certificate must be issued within ___________ of allotment of debentures.
Concept: Provisions for Issue of Debentures as per Companies Act, 2013
The contract between company and Debenture trustees of companies is called as _____________.
Concept: Debentures Trustees
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.
Concept: Procedure for Issue of Debentures
Complete the sentence.
A legal instrument conveying the assets of a company to the Debenture trustees is called _______________.
Concept: Debentures Trustees
Complete the sentence.
To protect the interest of Debenture holders, a company appoints ______.
Concept: Debentures Trustees
Correct the underlined word and rewrite the following sentence:
The details of debentureholders are entered in the Register of Members.
Concept: Debentures Trustees
Correct the underlined word and rewrite the following sentence:
A company issuing irredeemable debentures must create a charge on the assets of the company.
Concept: Debentures Trustees
Arrange in proper order.
a. Obtain Credit Rating.
b. Entry in register of debenture
c. Receive application with money
Concept: Procedure for Issue of Debentures
Arrange in proper order.
- Issue debenture certificate
- Issue prospectus
- Open bank Account
Concept: Procedure for Issue of Debentures
Arrange in proper order.
a. Hold Board Meeting for allotment
b. Issue debenture certificate
c. Receive application with money
Concept: Procedure for Issue of Debentures
Explain the following term/concept.
Debenture Trust Deed.
Concept: Debentures Trustees
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: |
- What can be the maximum tenure of the debentures to be issued?
- Is the proposed issue within the borrowing powers of the Board?
- Within what period should the company issue a Debenture certificate?
Concept: Procedure for Issue of Debentures
Explain briefly the procedure for issue of debentures.
Concept: Procedure for Issue of Debentures
Explain the following term/concept.
Debenture certificate
Concept: Provisions for Issue of Debentures as per Companies Act, 2013
Give one word or phrase for the following sentence:
The company enters into a contract with one or more debenture trustees.
Concept: Debentures Trustees
Study the following case/situation and express your opinion.
| Admire Ltd., a listed public company of which the board of directors recommended ₹10/- per share as a dividend to equity shareholders: |
- Is it mandatory for Admire Ltd. to take approval from Shareholders?
- Admire Ltd., paid a dividend of 99% to shareholders in cash and the rest 1% in kind. Is it permissible according to the law?
Concept: Provisions for Issue of Debentures as per Companies Act, 2013
