Question : Which of the following statements is false?
Option 1: Debenture is debt of the company. Therefore, a debenture holder is a lender.
Option 2: Debenture holder gets interest at the stated rate whether the company earns profit or not.
Option 3: Debentures cannot be issued at discount.
Option 4: Debentures can be converted into shares.
Correct Answer: Debentures cannot be issued at discount.
Solution : Answer = Debentures cannot be issued at a discount.
In reality, debentures can be issued at a discount under certain circumstances, such as when market conditions require it or as part of a financial restructuring plan. This allows companies to raise funds at lower effective interest rates. Hence, the correct option is 3.
Question : Which of the following statements is true?
Question : As per Section 53 of the Companies Act, 2013, the issue of shares at a discount shall be void, except in case of -
Question : What is true regarding debentures issued as collateral security?
Question : Which of the following statements is not true?
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