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Under what conditions may the directors of a company prefer to issue ordinary share rather than debentures?
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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.
Which Indian companies have recently issued debentures?
recently which industry/company had issued its debentures
Which Indian companies recently issued debentures?
recently which industry/company had issued its debentures
Can private company issue debentures?
YES!
Can public company issue debentures?
Yes
Is debentures in balance sheet?
Yes,debenture in the balance sheet because debentures is liability for the company so it comes debit side in balance sheet in the books of the company.
What are directors working conditions?
Film directors more or less establish the tone of a film set, so one could say that directors are in charge of the working conditions there. Otherwise, directors work in their comfortable work locations, where ever they may be located: at home, on a production company lot, in an office and so forth. Also, depending on the phase of the movie, a director works in task-specific conditions.
What is the advantages and disadvantages of debentures?
You get a fixed preannounced return on your investment. You do not gain from the performance of the company. You may be affected by the inability of the company to honor its commitment to you by way of payment. You have a priority claim over the shareholders in case of a company going bankrupt. Country specific laws apply. Some debentures are converted into equity shares after a specific period Note: Please read the terms and conditions carefully.
Why debentures are considered very secure?
Debentures are credit instruments. Companies have to pay fixed interest to the debentures holders even though the company is running on loss. An the time of liquidation also the company have to repay the amount to debenture holders before paying it to share holders.
Can a subsidiary company have a separate board of directors from the parent company?
A subsidiary company definitely can have its board of directors, and practically, it usually have. Basically its parent company who appoints directors in board of directors of subsidiary companies. Day to day matters of the subsidiary company cannot be run by parent company's board of directors, so it is necessary for a subsidiary to have its own board of directors which ultimately reports to parent company's board of directors.
Are subsequent directors elected by the board of directors?
after the company's first directors have been appointed, it may be necessary to make new appointments either to fill the vacancy when the director vacates office or to increase the size of the board by appointing one or more additional directors. The members of a company appoints a person by ordinary resolution to be a director. Theseus Exploration NL v Mining & Associates Industries Ltd 1973
What does OFCD stand for?
OFCD - optionally fully convertible debentures. these are the debentures that can be converted into equity at any time at the rate of interest decided by the company
