Q. 3. Study the following case / situation and express your opinion.
1) Violet Ltd. Company plans to raise Rs.10 crores by issuingdebentures. The Board of Directors have some queries. Please advise them on the following :
a) Can the company issue convertible debentures?
b) Can they issue irredeemable debentures?
c) As the company is offering debentures to its members, can such debentures have normal voting rights?
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a) Yes, Company can issue convertible debenture, after the completion of a per decided period debenture changed into Share but they lose their control on the company as the number of shareholders increased.
b) Yes, but irredeemable debenture can't be redeemed it is only redeemed at the time of winding up.
c) Debenture holder does not have any voting right.
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