Question

The meaning of “Debentures” is covered under which section of Companies Act, 2013:

• A. Section 2(30)
• B. Section 2(68)
• C. Section 2(71)
• D. Section 2(62)

Hint:

Remember: \[ \text{Debenture} \rightarrow \text{Section 2(30)} \] Important nearby sections: \[ 2(62) \rightarrow \text{One Person Company} \] \[ 2(68) \rightarrow \text{Private Company} \] \[ 2(71) \rightarrow \text{Public Company} \]

Answer 1

The Correct Option is A

Step 1: Understanding the Question:
The question asks to identify the specific subsection of Section 2 of the Companies Act, 2013, which provides the legal definition and scope of the term "Debenture".
This topic covers the essential definitions that form the foundation of company law in India.
Step 2: Key Formulas and Approach:
The approach is purely based on the memorization of key statutory definitions under Section 2 of the Companies Act, 2013.
The relevant mapping is:
\[ \text{Debentures} \rightarrow \text{Section 2, Clause 30} \]
Step 3: Detailed Explanation:

Definition of Debenture: According to Section 2(30), "debenture" includes debenture stock, bonds, or any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not.

Broad Scope: The definition is inclusive, meaning it covers various forms of debt instruments issued by a corporation to the public or private investors.

Analysis of Section 2(68): This section defines a "Private Company", which is a company that has restrictions on the transfer of its shares and limits the number of its members to 200.

Analysis of Section 2(71): This section defines a "Public Company", which is a company that is not a private company and has no limit on the maximum number of members.

Analysis of Section 2(62): This section defines a "One Person Company" (OPC), which is a company that has only one person as a member.

Significance: Knowing these sections is crucial for understanding the legal characteristics of different financial instruments and company types.

Step 4: Final Answer:
The legal definition of debentures is found in Section 2(30) of the Companies Act, 2013.
Thus, the correct answer is (A).