company

The amount required for the redemption of debentures is usually very large. It creates a great difficulty for the company to arrange this large amount to pay off its debentures. In case this large amount is paid out of company’s working capital, it may affect the routine working of the ...

Corporate bonds are longer-term debt instruments issued by companies to raise money. It is a debt security issued by a corporation and sold to investors. Corporate bonds are issued generally with a maturity date at least one year after the date of issue. Corporate bonds, which have a short-term maturity, ...

Escrow Account a contract, deed, bond, or other written agreement deposited with a third person, by whom it is to be delivered to the grantee or promisee on the fulfillment of some condition.Escrow is a legal arrangement in which an asset (such as cash, real property or other tangible assets) ...

1. Security Point of View (i) Secured Debentures (a) Fixed Charge: A fixed charge is created on certain specified assets generally immovable such as land and building, plant and machinery, long term investments and the like. So it is equivalent to mortgage. When the charge is fixed, the company can only deal ...

The Debenture Agreements is also called Debentures Contracts. The debentures agreements are issued all over the world by the governmental bodies as notes that express some degree of financial obligation. The debentures agreements or contracts include the various terms and conditions. The debentures agreements have a number of characteristics. The ...

Meaning When a Company desires to borrow a considerable sum of money for its expansion, it invites the general public to subscribe to its Debentures. A debenture is a certificate issued by the company acknowledging the debt due by it to its holders and is issued by means of a prospectus ...

Despite the various merits of Buy Back of Shares, there are serious apprehensions about this facility. It is feared that the buy back may be misused by the corporate entities at the cost of innocent investors. The inherent dangers may be listed as: (i) It will provide an ample opportunity for ...

1. Artificial Person: A company is an artificial person, which exists only in the eyes of law. The company carries business on its own behalf. It has a right to sue and can be sued, can have its own property and its own bank account. It can also own money ...

A share that carries the following two preferential rights is called ‘Preference Share’: (i) Preference Shares have a right to receive dividend at a fixed rate before any dividend given to equity shares. (ii) Preference Shares have a right to get their capital returned, before the capital of equity shareholders is returned. ...

Prospectus is an invitation to the public to subscribe for its shares or debentures. A prospectus has been defined as “any document described or issued as a prospectus and included notice, circular advertisement or other document inviting offers from the public for the subscription or purchase of any shares in, ...