Tuesday, August 18, 2009

Debenture holders.

REMEDIES OF DEBENTURE- HOLDERS:


The remedies of a debenture-holder of a company vary according to whether he is secured or unsecured. an unsecured debenture-holder is in exactly the same position as an ordinary trade crditor. like any other unsecured creditor,he has two remedies:

1.He may sue for his principal and intrest.

2.He may, if he wishers,


A secured debenture holder has both the above remedies;

1.Debenture-holders.

2.Appointment of receiver.

3.Foreclosure.

4.sales.

5.Proof for the balance.


RULES REGARDING DIVIDEND:

1.Resolution at the annual general meeting.

2.Payment of dividend in propotion yo paid up capital.

3.Dividend to be paid only out of profits.

4.Unpaid dividend to be transfered to special devidednd account.

a).unpaid dividend account.

5.Payment of unpaid or unclaimed dividend.

6.Establishment of investor education and protetion fund.

7.Dividend to be paid to the registered shareholder(sec206).

8.Right to dividend.

9.Penolty for defaulting directors.

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