It is given that ,A Pvt co. may issue debentures to any no.of persons , the only condition being that an invitation to the public to subscribe for debentures is prohibited..
plz explain this statement ..
tq...
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Issue of debentures
Replies (6)
limit on Pvt Company is in respect of members not debenture holders so a Pvt company may issue debentures to any no. of persons through private placement or preferential allotment but shall not issue prospectus to public for subscripttion .
Agreed with Vaishali. Any restriction on the number debentureholders in case of private limited company?
the act places on restriction on issue of debentures except to appoint a debenture trustee for issue to public , preferential allotment,or members exceeding 500.
so that means being a private company, i can have 500 debenture holders?
not so sure but I think yes
you can have more debenture holder if company appoints a debenture trustee as per section 71
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