Secretarial practice

Bibliographic data

Monograph

Identifikator:: 1828236004

URN:: urn:nbn:de:zbw-retromon-249926

Document type:: Monograph

Title:: Secretarial practice

Edition:: fourth edition

Place of publication:: Cambridge

Publisher:: W. Heffer & Sons Ltd

Year of publication:: 1930

Scope:: viii, 987 Seiten

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XVIII. Mortgages, debentures and receivers

Collection:: Economics Books

196 SECRETARIAL PRACTICE For the Stock Exchange regulations as to trust deeds, see Appendix D. The remedies of the debenture holder depend for the most part on the provisions of the trust deed. The deed generally provides that on default by the company the trustees may enter, sell the property charged, and distribute the pro- ceeds amongst the debenture holders. The trustees may be plaintiffs in an action to enforce the charge, or one debenture holder may generally sue on behalf of the class, in which case the trustees as well as the company are defendants. In the case of debenture stock where the certificate contains no direct covenant with the stockholders, the stockholders cannot enforce the covenant to pay. See Dunderland Iron Ore Co. (1909), 1 Ch. 446, where it was held that such stockholders are not creditors entitled to petition for winding up. Semble, however, they would as beneficiaries be entitled to enforce the provisions of the trust deed against the property. A receiver can be appointed by the Court in proper cases, or by the trustees under the power in the trust deed; a manager can also be appointed where necessary. As to receivers and managers, see pp. 205-208. Debentures In the case of debentures secured without a trust deed the secured security is created solely by a charge contained in the deben- ny I ture itself, charging the property which is to be the security * with the payment of the mortgage debt. The debenture usually contains conditions providing for enforcing the security. It seems doubtful whether the holder of debentures of this class has the remedies of a mortgagee under the Law of Property Act, 1925 [cf. Blakerv. Herts & Essex Waterworks Co., 41 C.D. 399, a case of a statutory company]. Accordingly the debenture usually provides that if the security becomes enforceable, a majority of the debenture holders may exercise the power of sale and of appointing a receiver (see below) conferred by the Law of Property Act, 1925, s. 101, and that they may enter into possession. A debenture holder may oring an action on behalf of himself and other debenture holders to enforce the security, and the Court may make a declaration of the charge, appoint a receiver and sometimes a manager (see below), direct necessary accounts and inquiries, and order a foreclosure or sale of the mortgaged property. A debenture holder may also bring an action in his own name upon the covenant by the company contained in the debenture to pay the principal and interest. He may also petition the Court to wind up the company. When the principal and interest are in arrear the debenture holder is entitled as between himself and the companv to a winding up order ex debito

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