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In company law, a debenture refers to a type of debt instrument typically issued by a company to raise funds from investors. Essentially, it's a written acknowledgment of debt that a company issues under its common seal. Debentures are backed by the general creditworthiness and assets of the issuing company.

Here are key points about debentures in company law:

1. Legal Agreement: When investors purchase debentures, they enter into a legally binding agreement with the issuing company. The terms of this agreement include the amount borrowed, the interest rate, repayment terms, and any other specific conditions.
2. Fixed or Floating Charge: Debentures often involve either a fixed or floating charge over the company's assets. A fixed charge is secured against specific assets of the company, such as land or buildings, while a floating charge covers assets that change in quantity and value, such as inventory or receivables.
3. Priority in Repayment: In the event of liquidation or bankruptcy, debenture holders typically have priority over other creditors in terms of repayment. This means that they are among the first to be repaid from the company's assets.
4. Interest Payments: Companies issuing debentures are obligated to make regular interest payments to debenture holders as per the terms outlined in the debenture agreement. Interest payments are usually made semi-annually or annually.
5. Redemption: Debentures can be redeemable or irredeemable. Redeemable debentures are those that the issuing company agrees to repurchase at a predetermined date or dates in the future. Irredeemable debentures, also known as perpetual debentures, do not have a fixed maturity date and are repaid only upon the winding up of the company.
6. Convertible Debentures: Some debentures come with an option for conversion into shares of the issuing company after a certain period. These are known as convertible debentures and provide investors with the opportunity to participate in the company's equity if its value increases.

Overall, debentures serve as an important source of long-term financing for companies while offering investors a relatively secure form of investment with a fixed income stream.