Debenture redemption reserve required under companies law; dividend distribution needs debenture trustees' approval if issuer defaults. Issuers must create a Debenture Redemption Reserve for redemption of debt securities in accordance with the Companies Act and Central Government circulars. If the issuer defaults on interest payment, redemption, or on creation of security as per issue terms, any dividend distribution requires approval of the debenture trustees.
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.
Debenture redemption reserve required under companies law; dividend distribution needs debenture trustees' approval if issuer defaults.
Issuers must create a Debenture Redemption Reserve for redemption of debt securities in accordance with the Companies Act and Central Government circulars. If the issuer defaults on interest payment, redemption, or on creation of security as per issue terms, any dividend distribution requires approval of the debenture trustees.
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