| Commentary

12 Debenture stock

| Commentary

12 Debenture stock

In an issue of ordinary debentures, each debenture1 is separate but uniform and generally for the same amount. It is possible to provide at the option of either the company or the holder for sub-division or consolidation by surrender and reissue2. In the case of an issue of debenture stock, on the other hand, a debenture debt for the whole amount secured is created and allotments are offered in multiples of the stock. Stock certificates containing the conditions upon which the stock is held are issued in respect of the allotments which are then

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