In the Companies Acts “debenture” includes debenture stock, bonds and any other securities of a company, whether or not constituting a charge on the assets of the company.
(1) A condition contained in debentures, or in a deed for securing debentures, is not invalid by reason only that the debentures are made—
(a) irredeemable, or
(b) redeemable only—
(i) on the happening of a contingency (however remote), or
(ii) on the expiration of a period (however long),
any rule of equity to the contrary notwithstanding.
(2) Subsection (1) applies to debentures whenever issued and to deeds whenever executed.
A contract with a company to take up and pay for debentures of the company may be enforced by an order for specific performance.
(1) A company must register an allotment of debentures as soon as practicable and in any event within two months after the date of the allotment.
(2) If a company fails to comply with this section, an offence is committed by—
(a) the company, and
(b) every officer of the company who is in default.
(3) A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 3 on the standard scale and, for continued contravention, a daily default fine not exceeding one-tenth of level 3 on the standard scale.
(4) For the duties of the company as to the issue of the debentures, or certificates of debenture stock, see Part 21 (certification and transfer of securities)
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