Joint Stock Company Accounts : Redemption of Debenture — Chapter Summary

Redemption of debentures means repayment

Redemption of debentures means repayment of the debenture amount to debentureholders or discharge of the company’s liability on repayment of debenture

The three methods are redemption

The three methods are redemption in a lump sum, redemption in annual instalments by draw of lots, and redemption by purchase in the open market.

All debentures are redeemed at

All debentures are redeemed at the end of the fixed period or earlier according to the issue terms, at par, at premium, or in special cases at discoun

The total amount of debentures

The total amount of debentures is divided by the number of years for which redemption lasts. Each year’s debentures are selected by lottery.

A company

A company, if authorised by its Articles of Association, can purchase its own debentures from the stock market. The debentures may be cancelled immedi