Section 37 : Inquiry and demand of statements by debenture trustee

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Prior to concluding an agreement with a company to act as a debenture trustee, the debenture trustee may hold necessary inquiry into, and obtain or demand statements, notice or information on, the following matters; and the concerned company has to provide the same if so demanded:

a) Whether the memorandum of association or article of association of the company has a provision that it may raise loans or debentures: and if so, whether the board of directors of the company has powers to make decision to so raise debentures,

b) Whether the memorandum of association or articles of association of the company has a provision that debentures may be raised through a debentures trustee,

c) Whether there is a situation that the existing assets of the company can cover the value of debentures raised,

d) Matters relating to other creditors and liabilities of the company.

e) The company’s balance sheet and auditor’s report.

f) Such other necessary matters as the debenture trustee may consider to be appropriate.

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Section 37 : Inquiry and demand of statements by debenture trustee

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