Borrowing limits under company law restrict board borrowings beyond capital and reserves without shareholder sanction.

Boards of public companies are restricted from borrowing beyond the aggregate of paid-up share capital and free reserves without prior shareholder sanction; debentures are a common non-voting form of corporate debt issued in multiple forms and may be consolidated as debenture stock. Issuance requires appointment and consent of debenture trustees and a trust deed to secure stock. Companies issuing debentures must create a debenture redemption reserve from profits until redemption and must keep a register of debenture holders; reserve (uncalled) capital cannot be charged except on winding up. Tribunal relief is available for non-redemption.

---

---

---