Issue of debentures by private company

Discussion in 'Pvt ltd' started by mandira, Dec 3, 2013.

  1. mandira

    mandira Member

    I have one Query. One of my Private Company is issuing Debentures to 10 known people. Whether appointment of Trustee is necessary??? Regarding the appointment of Debenture Trustees as Per Sec 117B provides "No company shall issue a prospectus or a letter of offer to the public for subscripttion of its debentures, unless the company has, before such issue, appointed one or more debenture trustees for such debentures and the company has, on the face of the prospectus or the letter of offer, stated that the debenture trustee or trustees have given their consent to the company to be so appointed: Since a Private Co. cannot issue debn to public, it can be opined that This Provision is applicable to Public issue by Public Company. With this in the background, it seems Pvt Co. need not appoint Debn Trustees. Views of all members are invited. If anyone has issued Debentures in Private Company, Please share whether Trustee was appointed or not???

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