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Business Environment and Law-Debentures

Debentures and its Characteristic features

   Posted On :  14.05.2018 09:18 pm

According to Sec. 2(12), ‘debenture’ includes debenture stock, bonds and any other securities of a company, whether constituting a charge on the assets of the company or not.

According to Sec. 2(12), ‘debenture’ includes debenture stock, bonds and any other securities of a company, whether constituting a charge on the assets of the company or not.
 

Characteristic features of a debenture:

 
            Debentures is issued by a company and is usually in the form of a certificate which is an acknowledgement of indebtedness.
            It is issued under the company’s seal.
 
            It is one of a series issued to a number of lenders. (
 
            It usually specifies a particular period or date as the date of repayment.
 
            It generally creates a charge on the undertaking of the company or some parts of its property.
            A debenture-holder does not have any right to vote in the company meetings.
 
 
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