Week 13 - What is a Debenture Flashcards
1
Q
What does ‘debenture’ include?
A
‘Debenture’ includes debenture stock, bonds and any other securities of a company, whether or not constituting a charge on the assets of the company
2
Q
A debenture is a document produced in the form of…
A
A deed that secures a loan through granting the lender (such as a bank) the right to take control over assets and possibly the business
3
Q
The lender is established as what?
A
The lender is established as a creditor with the authority to appoint an administrator in the event of non-repayment of the debt
4
Q
What may be enforced by the courts and how?
A
A contract with a company to take up and pay for debentures of the company may be enforced by courts by an order for specific performance
