Justify the following statements.Debenture trustees are appointed by a company issuing debentures.

Justify the following statements.Debenture trustees are appointed by a

1.	Justify the following statements.Debenture trustees are appointed by a company issuing debentures.
Answer» Debenture trustees are appointed when the company issues a prospectus or invites more than 500 people. They are appointed to protect the interest and redress the grievances of debenture holders. Debenture trustees act as custodians of assets and create a charge on assets of the company on behalf of debenture holders. In case, the company failed to redemption of a debenture or its interest, then debenture trustees by the order of NCLT can realize the assets and settle the dues. Thus, it is rightly said that debenture trustees are appointed by the company for issuing debenture.