Green Tree Limited is planning to issue debentures to the public and, as per the legal requirements, must appoint a debenture trustee before making…

CA Intermediate · Corporate and Other Laws · MTP · January 2025
Green Tree Limited is planning to issue debentures to the public and, as per the legal requirements, must appoint a debenture trustee before making an offer. The company is considering several individuals for this role: Mr. Sharma, who owns a small number of shares in Green Tree Limited as an investor.Ms. Kapoor, who previously lent - 5,000 to Green Tree Limited and is currently a lender.Mr. Verma, who has provided a personal guarantee to ensure the repayment of the debentures issued by Green Tree Limited. Based on the provisions of the Companies Act, 2013 and relevant rules, who among the following is eligible to be appointed as a Debenture Trustee for Green Tree Limited?
(A) Only Mr. Sharma.
(B) Only Ms. Kapoor
(C) Only Mr. Verma
(D) None of Mr. Sharma, Ms. Kapoor or Mr. Verma are eligible to be appointed as Debenture trustee of Green Tree Limited.

Suggested Answer and Working Notes:

Correct Answer: Option (D)

None of Mr. Sharma, Ms. Kapoor or Mr. Verma are eligible to be appointed as Debenture trustee of Green Tree Limited.

Topics: Share Capital and Debentures

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