Debentures simply, sometimes called naked debentures (that is to say), debentures which are not in any way secured, and Mortgage debentures
(a) (that is to say), debentures which are secured (either only by a charge in the debentures themselves, or else by such a charge and a further charge created by a trust or covering deed).
DEBENTURE HOLDER.
The person who holds a debenture. He may be either a registered holder, or a holder of a debenture payable to bearer. In the former case a document of transfer is necessary to pass the ownership to another person, but in the latter case the debenture is transferable by simple delivery.
A debenture holder is a creditor of the company, as the debenture represents a loan to the company, and the interest thereon must be paid before any dividend is received by the shareholders. (See Debenture.)
DEBENTURE STOCK.
Debenture stock is essentially the same as debentures, and both are usually secured by a charge or mortgage. Debentures, however, are for definite round sums, as separate debts, whereas certificates of debenture stock are for different amounts, as parts of one large debt.
The certificates do not require a stamp, but any deed creating a security for the stock is subject to the same duty as a mortgage (q.,.)
When a certificate of debenture stock is given as security, a transfer from the registered holder to the bank’s nominees, accompanied by a qualifying agreement, should be taken, and, to make the security fully satisfactory, the transfer should be registered. (See Blank transfer, Debenture, Loan Capital, Share Capital. Transfer of, Shares.)
DECLARATION.
A formal statement, or declaration, in writing. By the Stamp Act, 1891, updated in 2020 and the stamp duty is: £ s. d.
Declaration of any use or trust of or concerning any property by any writing, not being a will, or an instrument chargeable with ad valorem duty as a settlement . . . . . . 0 10 0 Declaration (Statutory). (See Affidavit.)
DECLARATION OF ASSOCIATION.
The declaration of association is the last clause in a memorandum of association, which, in the case of a company limited by shares, is as follows (Form A, Third Schedule, Companies (Consolidation) Act, 1908)
” We, the several persons whose names and addresses are subscribed, are desirous of being formed into a company, in pursuance of this memorandum of association, and we respectively agree to take the number of shares in the capital of the company set opposite our respective names.
No subscriber of the memorandum may take less than one share. (See Memorandum OF Association.) Subscribers frequently sign for only one share each.
DECODE.
To decode a telegram is to translate the code words into the words or figures which they represent. It has only recently come into use.