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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