Can A Private Limited issue Debentures?

Dear sir,

plz  tell me  Can A Private Limited issue Debentures or not.

Thanks

Shammi

Replies (4)

Hi Shammi,

 

Yes, refer to the enclosed pdf file for details and procedure.

 

Regards

 

HItesh

Yes it is very much possible. Also check the provisions of your Articles if there is any restriction placed.

a private company cannot issue debentures to general public as per section 3(1)(iii)

debentures as defined in companies act is an acknowledgement of a debt which is issued  by a borrower from a lender which is not always secured by  a charge on companies assets

a private company cannot accept deposit from public but it accept it from promoters ,directiors or the relative of te directors or the members

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