PART - IV 
BORROWINGS, DEBENTURES AND CHARGES  Borrowings 

28. i.  A company  registered with  the object  of carrying  on trade, commerce or  manufacturing shall  have power  to borrow moneys for the purpose for which the company is incorporated. 

ii. The total borrowings (exclusive of loans taken for working capital requirements of a company) shall not exceed thrice the paid up capital of the company or such other limit fixed by the Government. 

iii. All  borrowings by  a company  from outside  Bhutan shall require prior approval of the Government. 

Debentures 

29. i.  Subject to  section 28,  debentures shall  be issued only upon approval by the shareholders. 

ii. An  issue of  debenture to  the public  shall be made by issuing a prospectus similar  in form and details to the prospectus specified in section 19. 

iii. Debentures  issued by a company may be secured by mortgage and/or charge on the assets of the company. 

iv. For the purpose of securing debentures and enforcing the security, a company  shall execute  a trust deed in favour of its bankers or any other person  approved by  the debenture holders and the Department; a copy of  the trust  deed shall  be filed  with the  Department  within thirty days of execution. 

v. Every  debenture shall  be evidenced  by a  certificate  and  shall include particulars, if any, prescribed by the Department. 

vi. The  provisions relating  to transfer  and transmission  of shares shall apply mutatis-mutandis to debentures. 

Charges and Mortgages 

30. i. Particulars of all mortgages or charges created by a company or any modification  or satisfaction  thereof shall  be  filed  with  the Department within  thirty days  thereof or  such extended  time as the Department may allow. 

ii. The filing of mortgages or charges with the Department may be done either by the company or by any interested person and where it is done by a  person other  than the company, the Department shall give notice of the  particulars of  the mortgages or charges to the company before 
registering the same in its books. 

iii. Section  30 shall  apply  to  all  types  of  mortgages  and  the following charges: 

a.  a charge on any immovable property of the company; 

b.   a charge,  including pledge  or  hupothecation,  on  any  movable property of the company; 

c.   a floating  charge on  the undertaking  or any  property  of  the company including stock-in-trade; 

d.  a charge on any other property or right of the company. 

iv. If  the mortgages  or charges  are not  filed with  the Department within the  time specified  above, the person in whose favour they are created shall  not have the benefit of security constituted thereby as against any other creditor of the company. 

v. The Department shall maintain a Register of Charges and shall issue certificate of charges as per its record.