हिंदी

State, with Reasons, Whether the Following Statements Are True Or False Debentures Are Never Redeemed by the Company. - Secretarial Practice

Advertisements
Advertisements

प्रश्न

State, with reasons, whether the following statements are True or False 

Debentures are never redeemed by the company.

उत्तर

Debentures are never redeemed by the company. This statement is False. Reasons : (i) Debenture is a document issued by a company under its company seal and signed by the Director, acknowledging the loan accepted by the company from a party under certain terms and conditions stated there in. (ii) Debenture capital represents borrowed funds, which means, it has to be repaid after the expiry of certain period of time, with a fixed rate of return. (iii) On the basis of redeemability there are two types of debentures : (a) Redeemable Debentures—Which are repaid by the company on the expiry of specified time. (b) Irredeemable Debentures—These debentures are repaid by the company according to its convenance. Therefore, it can't be said that debentures are never redeemed by the company.

shaalaa.com
Payment of Interest on Debentures
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
2015-2016 (July)
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×