Issue of Debentures — Secretarial Practice STD 12 Commerce / Arts — Question

What type of source retained earning is?

What can be the maximum tenure of the debentures to be issued?

Should the company appoint a Debenture trustee?

What does he receive as a return on his investment?

A public limited company wants to invite depositor from the public at large as it neither wants to dilute its shareholdings nor at present want to use its reserves.Question (a) Does it require prior approval from shareholders? Question (b) What type of resolution does the company need to pass? Question (c) Is it necessary to file the resolution with the Registrar?

Should the company create a charge on its assets?

DDS financial plans to raise ₹ 10 crores by issuing secured, Non-convertible debentures. However, as per the Articles of Association, the board of directors has authority only to raise up to 5 crores. They are also considering whether to go for a private placement or make a public offer. Please advise them on the following:

The management of ‘Maharashtra State Road Transport Corporation’ wants to determine the size of working capital.
Question (a). Being a public utility service provider will it need less working capital or more?
Question (b). Being a public utility service provider, will it need more fixed capital?
Question (c). Give one example of a public utility service that you come across on a day-to-day basis.

Can they issue irredeemable debentures?

The Balance sheet of a Donald Company for the year 2018-19 reveals equity share capital of Rs. 25,00,000 and retained earnings of Rs. 50,00,000.