Debentures

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Can a Private ltd company  issue Secured/ Unsecured Compulsorily Convertible Debenture . If so should there be a debenture trust.
Kindly let me know the procedure to be followed by a private ltd co for isssue of debentures

 

Thanks & Regards

 

Chaitali

Replies (5)

Pvt. Company can issue only Secured Debenture (because unsecured debentures are reckoned as deposit), the procedure to be follwed (broadly):-

 

1. Board Meeting [Sec. 292(b)]

2. Board approval for - issue of debenture, creation of trust, trust deed, appointment of trustees, debenture certificate

3. Formation of trus procedures

4. Collect debenture application and subscripttion amount

5. Create Charge

6. Issuue debenture certificate, pay stamp duty

7. Create DRR.

 

Regards,

Can there issue unsecured debentures as they are complusorily convertible.If yes , if guide with the procedure

Upto my understanding;

 

Irrespective of the convertibility, it can not be Unsecured.

 

Wait for other's suggestion.

 

Regards,

Hi kindly see the attached file.

thanks for sharing article


CCI Pro

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