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Procedure to Issue Debentures Call Board Meeting. Call a board meeting, at which the board will decide what kinds of debentures the company will issue. ... Get the Following Documents Ready. ... Extraordinary General Meeting. ... Prepare and File Documents. ... Certified Debenture Certificate.
Issuance Process of Optionally Convertible Debentures Board Approval: The board of directors must pass a resolution to authorize the issuance of OCDs, including determining the terms, conditions, and the maximum number of debentures to be issued.
Companies can issue CCDs through a private placement offer u/s 42 of the Companies Act, 2013. ingly, issuance of Debentures will be categories as acceptance of Deposit under the provision of Companies Act, 2013.
Nature of approval Board Creation / Declaration of Trust Board Appointment of Debenture Trustees (Section 117B) Board Approval of Draft Trust Deed Board Approval of the Form of Debenture Certificate. Letter from Trustees Consent from the Debenture Trustees to act as Trustees.
The intending investors apply for debentures on the basis of the prospectus issued by the company. The company may either ask for the entire amount to be paid on application or by means of instalments on application, on allotment and on various calls. Debentures can be issued at par, at a premium or at a discount.