issue 0f debentures

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Parashar (Querist)
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27 August 2010 can a pvt. company issue unsecured debentures ? is it necessary to create charge for secured debentures?

kindly quote sections too

thanx

Ajay Mishra

Ajay Mishra (Expert)
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27 August 2010 Dear Friends

Yes, a private company can issue unsecured debenture under section 81 of the Companies Act, 1956 read with Unlisted Public Companies(Preferential Allotment) Rules, 2003.

However the provision of section 81 of the Companies Act, 1956 read with Unlisted Public Companies(Preferential Allotment) Rules, 2003 will not apply, but if you issue debentures you should follow as good corporate practice.

Regards
CS Ajay Mishra

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