Sunflower Ltd. must appoint a Debenture Trustee, must create a charge on its assets, and may keep the tenure below ten years since ten years is only the maximum limit.

Sunflower Ltd. proposes to issue secured, redeemable, non-convertible debentures for a tenure of ten years. The Companies Act, 2013 provides clear guidance on each point.

• Should it appoint a Debenture Trustee? Yes. When debentures are offered to the public (or to more than 500 persons), the company must appoint a debenture trustee to protect the interests of debenture-holders and execute a debenture trust deed.
• Should it create a charge on its assets? Yes. Because the debentures are secured, the company must create a charge (security) on its assets in favour of the debenture-holders, so that they can be repaid from those assets if the company defaults. …