close x


Can Pvt Ltd Company Issue Debentures

FINANCE & INVESTMENTS

Hi All,

Can any one clarify me on the issue of debentures by Private Limited companies without forming a Debenture Trust.

I can raise loans fron my friends up to 1 cr but cannot bring it as Share Capital.Because i dont want them to be in company as share holders and on the other hand i dont have enough money for my expansions.

But my friends are happy with the returns itself with share holder benefits. 

 
Reply   
 
Chief Financial Officer and Co

Fully Secured  debentures (by mortgage of immovable property) can be raised on pvt placement basis. As it is secured debenture to a group of persons, you will not be able to avoid trust.

 
Reply   
 


Finance Controller CA. CS. CFA. CIFRS. M.COM.

Forum Moderator

Srinivas is correct,Trust is always formed for the benefit and rights for the holders..so u cant avoid the trust

 
Reply   
 

when the pvt company issues shares and debentures to the public.  Anyone can suggest the company rules????????

 
Reply   
 
FINANCE & INVESTMENTS

Then in what form can i raise the amount, a private limited cannot raise loans from outside persons, apart from Directors of the company.

People are ready to invest in my company, beccause they know the business will do good in the future.

Can i take them as preference share holders at fixed coupon rate of return.

Please advice me in this regard, i have people to invest 1 crore in my investments firm ready.

 
Reply   
 
(Guest)

One way to deal with this matter is to make those friends members of your company by alloting them say just 1 share or 10 shares by transfer from existing shareholders. Transfer of such nominal amount of shares will not dilute shareholding of existing shareholders.
After transfer as your friends become members of the co., they can bring in deposits to the company from time to time of any time. And no compliances are required for such deposits. It is just a form of unsecured loan from shareholders. And can be repaid anytime.

 

 

 

 
Reply   
 
(Guest)

my share capital is 10 lakh can u guide me how much payment i can take ,we are 2 directors and i am appointed as managing director tese year our turn over will be around 3 crore

 
Reply   
 
Company Secretary


Originally posted by :Guest
" If yours is Private limited Company, take whatever you want "


 

 
Reply   
 
(Guest)

how much loan can a private limited company borrow

 
Reply   
 
Company Secretary


Originally posted by :Guest
" how much loan can a private limited company borrow "


 

As much as it can get

 
Reply   
 

LEAVE A REPLY



    

Your are not logged in . Please login to post replies

Click here to login   Click here to Register



 



Share on :