Sunday, 20 April 2014

(12.10.8) Issue of Debentures.

Debentures are commonly issued in a similar manner as shares by means of a prospectus inviting applications, the money being usually payable by installments on application, allotment and on specified dates. The power to issue debentures rests with the Board of Directors (s.292). Debentures may be issued at par, at a premium or at a discount, unless the Articles specifically forbids issue of debentures at a discount.

The company must complete and keep ready for delivery the debenture certificates within 3 months of allotment, unless the terms of the issue provide a longer period (s.113).

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