It is given that ,A Pvt co. may issue debentures to any no.of persons , the only condition being that an invitation to the public to subscribe for debentures is prohibited..
plz explain this statement ..
tq...
6 Replies
vaishali singh
(trainee)
(395 Points)
Replied 09 December 2018
limit on Pvt Company is in respect of members not debenture holders so a Pvt company may issue debentures to any no. of persons through private placement or preferential allotment but shall not issue prospectus to public for subscripttion .
Shrikant
(Associate)
(350 Points)
Replied 11 December 2018
Agreed with Vaishali. Any restriction on the number debentureholders in case of private limited company?
vaishali singh
(trainee)
(395 Points)
Replied 11 December 2018
the act places on restriction on issue of debentures except to appoint a debenture trustee for issue to public , preferential allotment,or members exceeding 500.
Shrikant
(Associate)
(350 Points)
Replied 11 December 2018
so that means being a private company, i can have 500 debenture holders?
Tejas Tak
(315 Points)
Replied 13 December 2018
you can have more debenture holder if company appoints a debenture trustee as per section 71
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