Debentures under company law: A critical analysis
- Third Concept
- 38(450), Aug, 2024: p.36-39
Debentures is nothing but a kind of acknowledgment of debt by a company. it includes debenture stock, bonds, or any other securities. Companies issue debentures because it is beneficial for the companies and debenture holders both. In this article, an analysis has been made of the provision of the previous companies act, 1956, and those of the present companions act, 2013 on seven main points related to the conversion of debentures into shares, the issue of secured debentures, rules for the debenture trustee, for protection of the interests of debenture holders, th appo9omtn of debenture trustees, the power vested with the tribunal, penal privations for non-compliance with the relevant prisons, and the creation of deceptive redemption reserve. – Reproduced