DEBENTURE

Definition
1. document which either creates a debt or acknowledges it, an any document which fulfils either of these conditions is debenture (Chitty J said in Levy v Abercorris Slate & Slab CO )
2. include besides debt, any obligation, covenant, undertaking or guarantee to pay or any acknowledgement thereof (James Foong J said in Bensa Sdn. Bhd. v Malayan Banking Bhd (1993))
3. Include any debenture stock, bonds, notes and any other securities of a corporation. Exclude bank deposit slips, bill of exchange & promissory note (Section 4 (1))
Types
1. Debenture payable to a registered
  1. registered in the name of the holder
  2. can be transfered
2. debenture payable to a bearer
  1. negotiable instrument
  2. transfered by deliver to transferee
3. Secured debenture
  1. property is charge to debenture holder
4. unsecured debenture
  1. not secured by a charge over the property
5. Redeemable debenture
  1. Principle money is repaid to holder at specific period
6. perpetual debenture
  1. issue w/o fixed date for redemption
Differences between share/shareholders and debenture/ debenture holder

Resource summary

	Created by baidurie92 almost 11 years ago