Forums
Accountancy
Please explain below para
Answers (4)
Debenture is a document which acts as a proof to loan given to a company and debenture holders are not owners of the company. The interest paid on debenture is prefixed regardless of the level of profit .example 9% debentures the loan given i.e. debenture amount is repaid after specific period of time or the debentures can be converted into shares that i.e convertible debentures The company's asset may or may not act as security for the loan given by debenture holder.
Thread Starter
siva chaitanyaHere what is trust deed
The document created by the company, whereby trustees are appointed to protect the interest of debenture holders before they are offered for public subscription is known as Debenture Trust Deed.