For a private company issuing debentures secured by charge on immovable asets :
1. Is it necessary to appoint Debenture trustee
2. Can any person be appointed as Debenture trustee or is there any specified category of persons.
Kindly enlighten.
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Debenture Trustee
Replies (1)
1. debenture trustee needs to be appointed.
2.
Who can be Trustees?
Only the following are eligible to be debenture trustee:
- A scheduled bank carrying on commercial activity.
- A public financial institution within the meaning of sections 4A (1) of the Companies Act 1956.
- Insurance Company.
- Body Corporate.
Who can not be a Trustee?
No person can be appointed as a trustee if he:
- Beneficially holds share in the company.
- Beneficially entitle to receive money, which are to be paid to/the by the company to the debenture trustee.
- Has entered into any guarantee in respect of principal debts, secured by debenture or interest thereon.
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