By going through these Maharashtra State Board Secretarial Practice 12th Commerce Notes Chapter 1 Introduction To Corporate Finance students can recall all the concepts quickly.
Maharashtra State Board Class 12 Secretarial Practice Notes Chapter 4 Issue of Debentures
→ The company can make a public issue of debentures only when:
- Company or its Promoters or its Directors are not prohibited from accessing securities market by SEBI.
- Company or its Promoters or its Directors have not declared themselves as defaulters or has not defaulted in repaying principal, interest or debt for a period of more than 6 months.
→ The company can issue debentures to its members through:
- Public Offer
- Private Placement
→ The company can also list its debentures on stock exchanges.
→ Section 71 of the Companies Act 2013, deals with the issue of debenture.
→ SEBI Regulation 2008 deals with provision for issue and listing of debenture which is not convertible.
→ SEBI Regulation 2009 deals with the provision for the issue of debenture and the listing of debenture that are convertible.
→ The Board of Directors has the power to issue debentures at:
→ The Board of Directors can issue debentures up to a limit mentioned in the Articles of Association. Special Resolution is required to be passed in General Meeting to issue more debentures.
→ Following provisions are to be followed while issuing debentures:
- Provisions laid by Companies Act, 2013
- Provisions laid by Companies (Share Capital and Debentures) Rules 2014
- SEBI Regulation
→ Company issuing prospectus or more than 500 debentures has to appoint one or more Debenture Trustees.
→ Debenture Trust Deed is an agreed contract between the company and Debenture Trustee containing terms and conditions.