An unlisted public company proposes to issue compulsorily convertible debentures on rights basis. It proposes to pass board resolution and special resolution at general meeting for the issue as required u/s 71(1). Request the following clarifications: 1.Since debentures are compulsorily convertible, presume will not be covered by sub-sec (3) of sec 62, which deals with increase in subscribed capital arising from exercising option to convert. So would it be in order for the company to follow the process in sub-sec (1) & (2) of Sec 62 for issue of these debentures? 2.Would the company berequired to follow rule 13 of Cos.(Share Capital & Debentures) Rules for determination of the price of shares on conversion of debentures by registered valuer,though not a preferential issue but only a rights issue,which may result in shares allotted to persons other than shareholders through renunciation. 3.Where the offer is to less than 500 members, can the issue be made without appointing a debenture trustee and also without creating security on the company's property? Kindly clarify Request the following clarifications:

Fund raising

Posted By: Radha 9 year(s) ago