Debentures with conversion options require special resolution; trustees, redemption reserves and tribunal powers protect debenture-holders. A company may issue convertible debentures with special resolution approval; debentures cannot carry voting rights. The company must create a debenture redemption reserve from distributable profits solely for redemption. Prospectuses or offers exceeding five hundred subscribers require appointment of debenture trustees, who must protect holders' interests and cannot be indemnified against liability for breach of trust absent prescribed exemptions. Trustees may petition the Tribunal if assets appear insufficient, and the Tribunal may restrict further liabilities or order redemption on default; interest and redemption must follow issued terms.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Debentures with conversion options require special resolution; trustees, redemption reserves and tribunal powers protect debenture-holders.
A company may issue convertible debentures with special resolution approval; debentures cannot carry voting rights. The company must create a debenture redemption reserve from distributable profits solely for redemption. Prospectuses or offers exceeding five hundred subscribers require appointment of debenture trustees, who must protect holders' interests and cannot be indemnified against liability for breach of trust absent prescribed exemptions. Trustees may petition the Tribunal if assets appear insufficient, and the Tribunal may restrict further liabilities or order redemption on default; interest and redemption must follow issued terms.
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