Difference between revisions of "Non-Profit Finances and Borrowing (Societies Act FAQs)"

From Clicklaw Wikibooks
Jump to navigation Jump to search
(Created page with "{{Societies Act FAQs TOC}} {{Societies Act FAQs NavBox}}")
 
m
(2 intermediate revisions by the same user not shown)
Line 1: Line 1:
{{Societies Act FAQs TOC}}
{{Societies Act FAQs TOC}}


==What are debentures?==
A debenture is a debt instrument used to raise capital. Debentures are typically used to raise short term capital for specific purposes (for instance an upcoming expansion). Debentures are “unsecured” by collateral or assets, and are generally backed up by the creditworthiness of the borrower.
Under the new Act, societies can borrow funds and issue debentures whenever the directors determine, unless it is prohibited by the bylaws. Under the current Society Act a special resolution was required for a society to issue a debenture.  A society that wishes to can continue to limit the borrowing powers of the Board in its bylaws. 


{{Societies Act FAQs NavBox}}
{{Societies Act FAQs NavBox}}

Revision as of 19:25, 25 September 2016

What are debentures?

A debenture is a debt instrument used to raise capital. Debentures are typically used to raise short term capital for specific purposes (for instance an upcoming expansion). Debentures are “unsecured” by collateral or assets, and are generally backed up by the creditworthiness of the borrower. Under the new Act, societies can borrow funds and issue debentures whenever the directors determine, unless it is prohibited by the bylaws. Under the current Society Act a special resolution was required for a society to issue a debenture. A society that wishes to can continue to limit the borrowing powers of the Board in its bylaws.


© Copyright 2016-2024, Pacific Legal Education and Outreach Society.