Answer Posted / divya selvaraj
The term debenture refers to a document issued by a company
acknowledging a debt due by it to its holders. It also provides for payment
of interest at a fixed rate at stated intervals. It also contains an undertaking
to repay the debt or at its option. It is usually under the common seal of
the company.
The debentures must be serially numbered and duly signed by
the directors as per the regulations contained in the articles. It should
also bear the date of issue and the date of redemption.
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