The Indian Companies Act, 2013 permits companies to raise money by issuing debentures, sometimes also known as convertible note. These debentures or convertible notes can be converted into equity shares at a govern point in time subject to an agreement called the convertible debenture agreement, also know a convertible note agreement. A debenture or convertible note is like a certificate of loan evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by such instruments becomes a part of the company’s capital structure, it does not become share capital. Hereunder is a sample convertible debenture / convertible note agreement template for reference. You could view the sample that will help one understand the mechanics of such agreements and order one for yourself. Evaluer has helped many companies in Chandigarh, Mohali, and Panchkula to prepare documents as per applicable laws in India and the Union Territory of Chandigarh / Tricity.
