debentures < charged > upon the Company’s property

thetazuo

Senior Member
Chinese - China
1.2.17 to borrow or raise or secure the payment of money or the satisfaction of any obligations of the Company in such manner as the Company shall think fit and in particular by the issue of debentures perpetual or otherwise charged upon all or any of the Company’s property (both present and future) including its uncalled capital and to give security by charging uncalled capital, and to grant a fixed or floating charge on any of the Company’s property and to purchase, redeem or pay off any such securities;

Constitution of xxx company

Hi. Could you please explain what the bold "charge" mean in this sentence? And how should I parse the underlined part?
Thank you.
 
  • CasparWeinburger

    Senior Member
    English--Canada
    I do not have the financial background to answer this question correctly. I understand that 'charged' refers to the debentures -- debentures that are charged on the Company's property, but I do not know what debentures are. It seems to be some kind of bond. Perhaps you need to ask someone will a background in finance.
     

    morior_invictus

    Senior Member
    Slovak
    First, I did not understand why someone would write that debentures are charged upon anything but then I did a quick search on Google and it turns out that I was only familiar with the U.S./Canadian usage.
    Debentures are an instrument available to business lenders in the UK, allowing them to secure loans against borrowers’ assets.
    [...]
    If you’re reading this article in the USA, you can ignore the above, unless you found this page as part of your research into the UK finance industry.
    Believe it or not, ‘debenture’ means something completely different in the United States. Rather than an instrument that’s used to secure a loan against company assets, a debenture in the USA is an unsecured corporate bond that companies can issue as a means of raising capital.
    Source: fleximize.com
    debenture (di-ben-char) 4. English law. A company's security for a monetary loan. The security usu. creates a charge on company stock or property.

    charge, n. 5. An encumbrance, lien, or claim <a charge on property >.

    charge, vb . 4. To impose a lien or claim; to encumber < charge the land with a tax lien >
    Source: GARNER, B.A. Black's Law Dictionary 7th ed., West Group, 1999.

    Here's my attempt (the sentence is poorly written and punctuated, in my opinion):
    to borrow money, or
    to raise money, or
    to secure the payment of money or the satisfaction of any obligations of the Company in such manner as the Company shall think fit and, in particular, by the issue of debentures (perpetual or otherwise) charged upon all or any of the Company’s property (both present and future) including its uncalled capital, and
    to give security by charging uncalled capital, and
    to grant a fixed or floating charge on any of the Company’s property, and
    to purchase, redeem or pay off any such securities;

    So the entity's objective (?) seems to be to borrow or raise or secure the borrowing by the issue of debentures (which will be perpetual or of a different kind) and the debentures will grant lenders a fixed/floating charge over the entity’s property including its uncalled capital (the entity felt the need to repeat that the uncalled capital will also be used as a security) and to purchase/redeem/pay off any such securities.
     
    Last edited:
    Top