SPCC 1 Marks Each

(1) The right to get information about the progress or development of the company from time to time. (2) The Company reserves the right to refund its finances at the time of dissolution.

The debenture holders of the company are unorganized, hence the appointment of some reputable persons as their representatives in accordance with the provisions of the trust to protect their interests is called debenture trustee.

The legal agreement of terms between the company and the debenture holders is known as trust deed, trustee agreement or trust trust agreement.

The certificate issued by the company secretary to the debenture holder after full repayment of debentures is called Debenture Certificate.

The debenture on which the company creates a burden by mortgaging the security of its assets is called Mortgage Debenture.

The debentures which can be converted in to equity shares on maturity are known as convertible debentures.

"Debenture is a document stamped with the general seal of the company in which the amount borrowed by the company at a fixed rate, at a fixed interest rate, with the condition of repayment after a fixed period, Accepts his debt. ”

The shareholder is considered the owner of the company.

The rate of return on debentures is fixed. Interest on debentures is mandatory whether profit is made or not.

When the total borrowed capital of a company exceeds its free reserve fund, a resolution is required to be passed in the general meeting for the consent of the members.

Debenture holders do not get the right to vote in the meeting of the company.

The amount of risk is less in debentures.

The company pays interest on the debentures as compensation.

The company pays dividends on shares as compensation.

A resolution is passed in the meeting of the board of directors of the company approving the transfer of debentures.

The debenture replacement form shows the names, addresses, details of debentures, certificate number, order, number of debentures and price of debentures of both the parties buying and selling debentures.

When the total borrowed capital of a company exceeds its free reserve fund, a resolution is required to be passed in the general meeting for the consent of the members.

When a company has mortgaged certain assets as collateral for debentures, it is called Fixed Charge.

In case of replacement of registered debenture, it is necessary to obtain the prescribed form and fill in the required details.

If the registration of a trust deed is to be changed after it has been made before the Registrar of Companies, the change can be made only after convening a general meeting of the debenture holders and obtaining their consent.

There are two types of debentures in terms of conversion. (1) Convertible Debenture (2) Non-Convertible Debenture.

When the situation of fixed or unstable burden arises in the company, the work is done as per the provision of trust deed.

The property given under security has the right to take legal action in case of violation of the provisions of the trust, non-compliance with the conditions.

The debenture holder has the right to appoint a debenture trustee to protect their interests.

The Board of Directors decides on the number of debentures, cost of debentures, total amount of debentures, rate of interest, terms of payment of interest etc.

When any mistake is made in compliance with the provisions of Indian Companies Act, the company which is entitled to that officer is liable to fine or punishment.

Special provisions for issuance of debentures have been issued in the Indian Companies Act.

A debenture that can be converted into an equity share is a convertible debenture.

Non Convertible Debenture.

F.C.D which means that the entire money of such debentures is converted into equity shares.

P.C.D which means that part of the value of such debentures can be converted into equity shares.

Partly Convertible Debenture.

If the debenture holder accepts the F.C.D option then the rights as a debenture holder expire as a company creditor and the rights as an equity shareholder are acquired.

Fully Convertible Debenture.

The company mortgages the assets in the mortgage debenture.

A joint stock company established by law as per the Companies Act issues debentures.

There are two types of debentures in terms of securities.(1) Simple Debentures (2) Mortgage Debentures.

Debentures which cannot be converted into equity shares are Non-Convertible Debentures.