Business Environment and Law-Debentures
Debentures and its Characteristic features
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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.
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.
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.
Tags : Business Environment and Law-Debentures
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