What is the maximum limit of interest that a company can offer on debentures as per Companies Act 2013?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- No maximum Limit is prescribed.
Debenture is debt to the Company. It's like a loan that needs to be repaid over a certain period of time. Debentures carry fixed interest rate. As per the Companies Act, 2013, there is no maximum limit prescribed for the interest that a company can offer on debentures.