Company need to pay Interest according to the terms agreed every year irrespective of the profits ea......

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Companies Act-Phase (I & II) Share capital and debentures Add to Study Deck

Company need to pay Interest according to the terms agreed every year irrespective of the profits earned and demand from the debenture holders.

As and when debenture holders demand

Only in the year in which company earns profit

Irrespective of the earnings of the company, they should to make payment to Debenture holders every year

Both a and c

Explanation:

According to Sec 71of Companies Act, A company shall pay interest and redeem the debentures in accordance with the terms and conditions of their issue.

Company need to pay Interest according to the terms agreed every year irrespective of the profits earned and demand from the debenture holders.

By: Srishti Gupta

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Share capital and debentures

Companies Act-Phase (I & II)

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