A company may issue perpetual debentures, and a condition contained in any debenture, or in any deed for securing any debentures, shall not be invalid by reason only that the debentures are made irredeemable or redeemable only on the happening of a contingency, however remote, or on the expiration of a period, however long, any rule of equity to the contrary notwithstanding.
Companies and Allied Matters Act 2020 · Part B · Chapter 9
Section 196 Perpetual debentures
Cite as: Companies and Allied Matters Act 2020, section 196
What this section means
From the guide: Debentures, floating charges and debenture trust deeds under CAMA 2020
- Perpetual debentures are valid even if irredeemable or redeemable only on a remote contingency (section 196).
Read the whole subject
Source: Companies and Allied Matters Act 2020 (Act No. 3 of 2020), Official Gazette No. 124, Lagos, 10 August 2020. General information, not legal advice.