Ques:- How does Companies Act protect the interest of Debenture holders?
Asked In :-
Circle Internet Financial, JSL, MOIL, Happay, Fullerton India, SMS India, Imperium Management, Export Trading Group (ETG), Arohan Financial, Sime Darby,
Right Answer:
The Companies Act protects the interests of debenture holders by ensuring that their rights are clearly defined, requiring companies to maintain a register of debenture holders, mandating the payment of interest and repayment of principal as per the terms of the debenture, and providing legal recourse in case of default. Additionally, it may require companies to create a trust deed for the protection of debenture holders' interests.
The Companies Act protects the interests of debenture holders by ensuring that their rights are clearly defined, requiring companies to maintain a register of debenture holders, mandating the payment of interest and repayment of principal as per the terms of the debenture, and providing legal recourse in case of default. Additionally, it may require companies to create a trust deed for the protection of debenture holders' interests.