chaitali (Article) (83 Points)
12 August 2010
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
vivek
(CS)
(751 Points)
Replied 12 August 2010
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,
chaitali
(Article)
(83 Points)
Replied 12 August 2010
Can there issue unsecured debentures as they are complusorily convertible.If yes , if guide with the procedure
vivek
(CS)
(751 Points)
Replied 12 August 2010
Upto my understanding;
Irrespective of the convertibility, it can not be Unsecured.
Wait for other's suggestion.
Regards,
HARDIK
(COMPANY SECRETARY NCFM (Corporate Governance ))
(664 Points)
Replied 15 August 2010
Hi kindly see the attached file.
CAclubindia
