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Unsecured non convertible debentures

Co Act 2013 449 views 4 replies

purvikakani

99 Points Joined May 2013

Dear friends and Colleagues,

A Pvt co wants to allot unsecured non convertible debentures to persons more than 70. Can it allot such debentures as per co Act 13?

If yes, pl guide what shall be the procedure for such allotment.

Thanks

Purvi Kakani

Replies (4)

CS Durgesh Soni

COMPANY SECRETARY

88 Points Joined April 2014

Dear Purvi,

As per section 23(2) and 42 of the Companies Act, 2013, u should make multiple allotments in a financial year by making division of number of allottes in such a manner that it doesn't exceed 50 at one time. You can get procedure easily from Act and Rules.

Thanks & Regards,

CS Durgesh Soni

purvikakani

99 Points Joined May 2013

Dear Mr. Durgesh,

Thanks you for the reply. So shud I follow procedure with respect to allotment of shares as prescribed?

Thanks

Purvi Kakani

CS Durgesh Soni

COMPANY SECRETARY

88 Points Joined April 2014

Yes The wordings used in the Act are for allotment of securities not particular shares only. So securities include debenture also and u have to follow procedure.