Debentures

In addition to storing your ownership details within Diligent Entities, you can use the system to also record information on Debentures. The data entry process will be very similar to that of entering share-based ownership. In particular, debenture categories will need to be set up prior to issuing debentures to debenture holders.

Debenture Categories

To create a new Debenture Category, go to:

Debentures > Debenture Categories.
Select either New or Wizards > New Debenture Category.

The New Debenture Category Wizard will open.

Enter the debenture category name to describe what type of debentures are being issued.
Enter any notes if required.
The currency of the debenture category will automatically default to that of your Company's country of Incorporation.
Select Next.

Enter the authorised amount of debentures.
Enter the amount of debentures that you will issue to holders.
Enter the date on when this debenture category would have been created (i.e. from when debentures from this category can be issued).
Enter the date on when this debenture category will cease to be used (i.e. from when you will no longer be able to issue debentures from this category).
Select Next.

Diligent Entities will automatically display rights for you based on the details you have entered so far. Amend if necessary.
Select Next.

Select the checkbox to show debenture holders for this category on the statutory registers.
Select Next.
Enter any required notes.
Select how you want to action your event.
Select Finish.

You will now have created your debenture category.

Adjust Authorised Debentures

To adjust the authorised debentures:

Select the Options Menu located to the left-hand side of the category.
Select Adjust Authorised.

The Adjust Authorised Amount Wizard will then open.

Confirm which Category you want to amend and select Next.

Select whether you want to increase or decrease the total authorised amount.
Enter the amount by which you want to increase / decrease your authorised debentures.
Select Update total to see what the total authorised debentures will be.
Select Next.
Enter the event date and select Next.
Select the rights and select Next.
Enter the board meeting date and select Next.
Select how you want to action your event.
Select Next and Finish.

You will now have adjusted your authorised debentures.

Adjust Issued Debentures

To adjust the issued debentures:

Select the Options Menu located to the left-hand side of the category.
Select Adjust Issued.

The Adjust Issued Amount Wizard will then open.

Confirm which category you want to amend.
Select Next.

Select whether you want to increase or decrease the total issued amount.
Enter the amount by which you want to increase / decrease your issued debentures.
Select Update total to see what the total issued debentures will be.
Select Next.
Enter the event date and select Next.
Select how you want to action your event.
Select Next and Finish.

You will now have adjusted your issued debentures.

Cancel Debenture Category

Should you need to cancel the existing debenture category, you must:

Select the Options Menu located to the left-hand side of the category.
Select Cancel Debenture Category.

The Cancel Debenture Category Wizard will open.
Confirm the category you want to cancel and select Next.
Enter the cancellation date and select Next.
Select how you want to action the event.
Select Next and Finish.

Debenture Category Options

If you want to amend any details that you initially entered when creating your debenture category, you will need to:

Select the Options Menu located to the left-hand side of the category.
Select Debenture Category Options.

The Debenture Category Wizard will then open, which will allow you to:

Amend the category name
Amend the notes
Amend the currency
Specify whether or not debenture holders should be shown on the statutory registers
Amend the numbering which includes:
Next allotment number
Next transfer number
Next certificate number.

Debenture Category History

Should you need to edit or undo the debenture category:

Go to Debenture Categories.
Select either on the History button or on the Clock icon located to the left-hand side of the category.

Select which debenture category event you want to edit / undo.
Select the Options Menu next to the event.
Select to edit / undo the event.

Note

If you need to undo debenture events, you must undo them in reverse chronological order (i.e. the last thing you entered must be the first thing you undo). If you are unsure about how to undo events from your Debenture Category History, speak to the Support Team first. Undoing events incorrectly (or in the wrong order) can severely damage your history.

Debenture Holders

To issue debentures to debenture holders, go to:

Debentures > Debenture Holders.
Select Issue.

Alternatively, you can select the Wizard icon where you can also perform an Opening Balance if required, or use the Batch Many People functions.

The Issue Debentures Wizard will then open. Select which debenture category you are issuing from and select Next.
Select who the debenture holder will be.

Select Next.

Enter the date on when the debentures were issued to the holder.
Enter the amount of debentures the holder will have and select Next.
Enter any consideration and select Next.
Enter any required notes and select Next.
Select how you want to action your event and select Next.
Select the checkbox to generate the debenture certificate (where available).
Select Next and Finish.

You will now have issued your debentures to your debenture holder.

You can then issue further debentures to the same holder by:

Selecting the Options Menu on the left-hand side of the holder.
Selecting Issue Amount.

If there are not enough authorised or issued debentures, you must return to the Debenture Categories section and increase the amounts as explained in the previous sections.

Debenture Transfer

To transfer debentures from one debenture holder to another:

Select the Options Menu to the left-hand side of the transferor.
Select Transfer Amount.

The Debenture Transfer Wizard will then open. Select which category will be involved in the transfer and select Next.
Select from whom you will be transferring debentures.

Select Next.
Enter the event date and the amount of debentures you want to transfer and select Next.

Select to cancel all certificates that are currently held by the transferor and new ones will be issued with the correct ownership details.

Select Next.
Select who the transferee (i.e. the new debenture holder) will be.

Select Next.
Enter any consideration if required and select Next.
Enter any required notes and select Next.
Select how you want to action your event and select Next.
Select to generate certificates, where available.
Select Next and Finish.

You will now have transferred your debentures to the new holder.

Debenture Disposal

To dispose of any debentures:

Select the Options Menu to the left-hand side of the holder.
Select Dispose of Amount.

Select the type of disposal.

Select Next.
Enter the board meeting date and click
Select the relevant debenture category and click
Select who is disposing of their debentures and click
Enter the date and the number of debentures that are to be disposed of.

Select Next.
Select to cancel all certificates that are currently held by the holder and new ones will be issued with the correct ownership details (where applicable).

Select Next.
Enter any consideration if required and select Next.
Enter any required notes and select Next.
Select how you want to action your event and click
Select to generate certificates, where available.
Select Next and Finish.

You will now have disposed of your debentures.

Debenture History

Should you need to edit or undo the debenture holder history:

Go to Debentures > Debenture History.

Select which event you want to edit / undo
Select the Options Menu next to the event
Select to edit / undo the event.

Caution

If you need to undo debenture events, you must undo them in reverse chronological order (i.e. the last thing you entered must be the first thing you undo). If you are unsure about how to undo events from your Debenture History, speak to the Product Support Team first. Undoing events incorrectly (or in the wrong order) can severely damage your history.

Debenture Certificates

All debenture certificates are located under:

Debentures > Debenture Certificates.

From here, you will be able to:

Reprint certificates
Consolidate certificates
Freeze certificates

You can do this by selecting the Options Menu adjacent to the certificate you want to amend.

Debenture Interests

To declare interest payments for debentures, go to:

Debentures > Debenture Interests.
Select Wizards > Interest Payment.

The Declare Debenture Interest Wizard will then open. Enter the interest dates and select Next, noting that the Record Date must be completed as it determines which debenture holders are entitled to interest payments.

Select the relevant debenture category.

Select Next.

Enter the appropriate percentages (for example, tax and interest rate).
Complete the amount of days for which interest is to be paid, as well as the number of days in the year and select Next.
Enter the payment date and select Next.
Select the persons to receive interest. By default, the interest will be paid to everyone on the list. Should you want to eliminate certain debenture holders from the list, select the checkbox next to the relevant entity and select Waive.

Select Next.
Enter any required notes and select Next.
Select how you want to action the event and select Next.
Select the checkbox for the debenture interest report to be generated (where available).
Select Next and Finish.

You will now have paid interest for your debentures. Select the arrow located on the left-hand side of the payment to view additional details.

Select View Details to view the payees' names.

Select the Folder icon to return to the previous page.