Sources of Corporate Finance — Secretarial Practice STD 12 Commerce / Arts — Question

As the company is offering debenture to its members, can such debentures have normal voting rights?

Should the company create a charge on its assets?

Can the company issue unsecured debentures?

Rose limited company proposes to issue debenture to the public to raise funds. After discussion, the Board of directors has decided to issue secured, Redeemable non-convertible debentures with a tenure of ten years. Please advise the board on the following matters:

Mr. Satish is a speculator. He desires to take advantage of the growing market for the company’s products and earn handsomely.

According to you, which type of share Mr. Satish will choose to invest in.

Can they issue irredeemable debentures?

Should the company appoint a Debenture trustee?

What type of source retained earning is?

A company is planning to enhance its production capacity and is evaluating the possibility of purchasing new machinery whose cost is ₹ 2 crore or has alternative of machinery available on a lease basis.
Question (a). What type of asset is machinery?
Question (b). Capital used for the purchase of machinery is fixed capital or working capital.
Question (c). Does the size of a business determine the fixed capital requirement?