Debenture Trustee

1. debenture trustee needs to be appointed.

2.

Who can be Trustees?

Only the following are eligible to be debenture trustee:

1. A scheduled bank carrying on commercial activity.
2. A public financial institution within the meaning of sections 4A (1) of the Companies Act 1956.
3. Insurance Company.
4. Body Corporate.

Who can not be a Trustee?

No person can be appointed as a trustee if he:

1. Beneficially holds share in the company.
2. Beneficially entitle to receive money, which are to be paid to/the by the company to the debenture trustee.
3. Has entered into any guarantee in respect of principal debts, secured by debenture or interest thereon.