Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
Agreement between the company and trustee to look after the interest of debenture holders is called as?
Options:
Agency Agreement
Trust deed
Debenture Trust Deed
Debenture Agreement
Correct Answer:
Debenture Trust Deed
Explanation:
A debenture trust deed is an instrument that a company executes in favour of a debenture trustee, thereby appointing them and defining their role and duties to protect the interest of debenture holders before debentures are offered for public subscription.