Raising loans or issuing debentures

Raising loans or issuing debentures

(1) If a public company deems necessary to raise loans or issue debentures, it may, specifying the reason, therefore, a work plan to be executed from proceeds and budget necessary for that propose raise loans or issue debentures with or

without pledging or mortgaging its immovable assets.

                 Provided, however, that no debentures may be issued unless and until

an approval to commence its business is obtained and its issued capital is fully paid up.

(2) Notwithstanding anything contained in the prevailing law, any company may, subject to sub- section(1) , raise additional loans or issue additional debentures against the security already furnished by that company with the already furnished by that company with the previous creditors as a security from such creditors, within the limit of such security, by clearly indicating the previous creditors as well as amount of loan (amount) already obtained.

(3) Notwithstanding anything contained in the prevailing law, the matters relating to the terms, repayment period and interest of a loan borrowed or lent by a company shall be governed by a deed or contract concluded between the creditor and the borrower.

(4) If a company is to raise loans or issue debentures pursuant to Sub- section (1) or (2), the company shall give its information, along with the reasons for the same, to the office.