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What is a Debenture in a company?

Updated: 9/19/2023
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Q: What is a Debenture in a company?
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Is debenture holder a customer of the company?

NO,debenture holder is the creditor of the company


If someone holds a debenture what can they do with it?

With a debenture, a company can hold a debt with another. A debenture is a loan agreement where there is no collateral or assets involved. It is based on the promise and credit history of the company that it will be paid back.


Is A debenture holder of the company a creditor of the company?

No, A debenture bond owner is just like any other bond owner. A debenture bond is an uninsured bond. The owner of a bond is just lending their money to a company for a long-term period. A bond is an example of a long-term debt. An owner of a company would be an example of an equity such as a stockholder (common, or preferred).


Give cases in debenture company law?

i want to get some information about the debenture cases. thank you


What is the meaning and definition of redemption of debenture?

Redemption of Debenture was enacted into Indian law in 2000. It states that any Indian company with a debenture trust must also have a plan in place for its investors, in case of the company's failure.


What happens to a convertible debenture after liquidation of a company?

Its worthless.


What is Debenture Redemption Reserve?

Debenture is a debt instrument to raise funds. It has a maturity period associated with it. At the end of the maturity, the company(borrower) should return the interest and principal amount. Debenture Redemption Reserve is an amount kept as reserve for paying the debenture holder at the end of the maturity period.


Why debentures are not forfeited?

debenture is a loan to company and its face value will be higher moreover it carries fixed interest which is charge against profits.so there is no chance from the side of debenture holder for non payment of calls after repeated notices from the company. from the view point of company it cannot forfiet a debenture and treat it as a capital profit because they are not owners is this explanation coreect for that question?


Difference between a debenture holder and Investor?

A debenture invests fund in the company and is sure of its return eventhough the company fails through its corporate stock. An investor can only gain depending upon the market condition.


Debenture holder treated as member or not?

No,debenture holders are not treated as members. Debentures are mere debts and debenture holders are just creditors.They give their money to the company at a fixed interest rate.Debenture holders being creditors get guaranteed interest, as agreed, whether the company makes profit or not. Also debenture holders have no right to attend and vote at the meetings of the share holders. Answered By:- Karunakar Gautam DCE Student


What is single debenture?

If for example a company obtains a secured loan or overdraft facility from its bank, the latter is likely to insist that the company seals the banks standard form of debenture creating the charge and giving the bank various safeguards and powers


What is redemption of debentures using purchase of own debenture?

A company can buy its own debenture in the open market, if it is authorised by its AOA. the debentures so purchased can be used either for immediate cancellation or redemption of debenture or for investment. the debenture so purchase for investment can be subsequently either be issued to fullfill additional requirements of cash or can be cancelled if the company so desires. debentures when purchases for investment are popularly known as 'OWN DEBENTURES.'