COMPANIES ACT - 1963 (ACT 179)

    Section - 86 - Secured or Naked Debentures

    (1) Debentures may either be secured by a charge over the company's property or may be unsecured by any charge.

    (2) Debentures may be secured by a fixed charge on certain of the company's property or a floating charge over the whole or a specified part of the company's undertaking and assets, or by both a fixed charge on certain property and a floating charge.

    (3) A charge securing debentures shall become enforceable on the occurrence of the events specified in the debentures or the deed securing the same.

    (4) Where any legal proceedings are brought by a debentureholder to enforce the security of a series of debentures of which he holds part, the debentureholder shall sue in a representative capacity on behalf of himself and all other debentureholders of that series, and section 324 of this Code shall apply.

    (5) Where debentures are secured by a charge the provisions of Part L of this Chapter relating to registration of particulars of charges, shall apply.