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Can private company issue debentures?
YES!
Can public company issue debentures?
Yes
What do you mean by ex-interest in issue and redemption of debentures in company account?
Whan compay purchase debenture from the open market
What is debenture explain in simple term?
Debentures refers to discharging the liability on account of debentures in accordance with the terms of issue.
What Advantages does issue of debentures over equity shares?
Cost is the major advantage. Debentures are to be serviced for the contracted period of time, while equity servicing is perennial.
Can company issue debenture with pari passu clause?
YES, a company can issue its debentures with a pari passu clause when they are issued in series. This implies that the debentures shall be paid proportionately. This assumes an added advantage when the company is short of cash & does not have the amount to make payment for debentures.In such case, all the debentures held by a creditor of the company ranked equal as regard charge and repayment with the others of that series. However, a company cannot give this right tto its new debentureholder of its old debentures unless it is expressly authorised to do so.
Can private company issue debentures?
YES!
Can public company issue debentures?
Yes
Why maturing debenture may cause problems for the company?
Ideally speaking it is not a problem for the company. All they have to do is, to pay back the investors who bought the Debentures at the time of issue. It can be a problem if the company does not have enough finances to pay off the investors whose Debentures are maturing.
Discount on issue of debentures is a?
capital loss to be written off over the tenure of the debentures .
What do you mean by ex-interest in issue and redemption of debentures in company account?
Whan compay purchase debenture from the open market
Under what conditions may the directors of acompany prefer to issue ordinary shares rather than debentures?
ordinary shares are equity whereas debentures are debt - debt is always payable, whereas, equity holders do not always necessarily demand a dividend payment immediately. it would depend on what the company wanted to use the funds for. if the funds were used to fund a project where the returns were not expected for a few years, a company may wish to issue shares rather than debentures as the debentures would have to be paid regardless of when the returns came.
What is capital subscription?
a public company can raise the required funds from the public by means of issue of shares and debentures. for doing the same,it has to issue a prospect which is an invitation to public to subscription to the capital of the company and undergo varous other formalities
What is debenture explain in simple term?
Debentures refers to discharging the liability on account of debentures in accordance with the terms of issue.
Issued debentures by Mahindra and mahindra?
which year mahinra and mahindra issue debenture
What Advantages does issue of debentures over equity shares?
Cost is the major advantage. Debentures are to be serviced for the contracted period of time, while equity servicing is perennial.
What are the characteristics of debentures?
Characteristics of a debenture:1. It is an instrument in writing. An oral promise in acknowledgement of a debt is not a debenture.2. It is an acknowledgement of the indebtedness of the company to its holder for the amount stated in it.3. It is usually under the seal of the company but it is not necessary. A certificate signed by two directors of a company and without bearing the company's seal is a valid debenture.4. It is one of a series of like debentures. But a single debenture may be issued to one man.5. It provides for the payment fixed sum with interest of a specified rate by a specified time. But this is not essential because a company may issue perpetual debentures. Section 120 of the companies' act 1956 expressly provides for the issue of perpetual or irredeemable debentures w3hich are made payable only in the event of a winding up or some serious default with the company.6. It is generally secured by a charge, fixed or floating on any part of the company's property or undertaking. But this is, however, not an essential condition because section 2(12) provides that the debentures may or may not constitute a charge on the assets of the company.FromRohit Mathur Jaipur
