Section 71 of CA 2013 – Section 71: Debentures | CA 2013

The Companies Act, 2013

CHAPTER IV: SHARE CAPITAL AND DEBENTURES

Section 71: Debentures

(1) A company may issue debentures with an option to convert such debentures into shares, either wholly or partly at the time of redemption: Provided that the issue of debentures with an option to convert such debentures into shares, wholly or partly, shall be approved by a special resolution passed at a general meeting.

(2) No company shall issue any debentures carrying any voting rights.

(3) Secured debentures may be issued by a company subject to such terms and conditions as may be prescribed.

(4) Where debentures are issued by

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Explanation using examples

Imagine XYZ Ltd. wants to raise capital for expanding its operations. Instead of issuing only shares, the company decides to issue debentures with a feature that allows investors to convert these debentures into shares

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Section 71 of CA 2013 : Section 71: Debentures

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Explanation using examples

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