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A company may issue debentures that are convertible into shares only after approval by:
ABoard resolution alone
BA special resolution at a general meeting
CAn ordinary resolution at a general meeting
DCentral Government order
Answer & Solution
Correct answer: B. A special resolution at a general meeting
1. Section 71(1) — issue of debentures with an option to convert into shares requires a SPECIAL resolution at a general meeting.
2. The conversion option must be disclosed in the issue prospectus.
3. Hence (C).
_Source: ICAI BoS CA Inter Paper 2 — Share Capital and Debentures_