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Sources of Business Finance — OCM STD 11 Commerce — Question

Gujarat BoardEnglish MediumSTD 11 CommerceOCMSources of Business Finance2 Marks
Question
How the interest of debenture-holder is protected ?
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Answer

  • Debenture-holders are the creditors of the company. Floating charge is created to protect the interest of debenture-holder. Trustees are appointed. According to Trust Deed, they protect interest of debenture-holders.

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