Explanation

A public limited liability company can raise additional funds by issuing debentures. Debentures are long-term loan instruments that allow companies to borrow money from investors with a promise to pay fixed interest and repay the principal at a specified future date.

Debentures are attractive for companies because they provide funds without diluting ownership (unlike shares). Investors receive fixed interest regardless of company profits, and debenture interest is tax-deductible for the company.

Accumulated fund is the term used for the capital of non-profit organizations, not PLCs. Consolidated fund is a government term for public revenue. A cheque is a payment instrument, not a way to raise capital.

Debenture holders are creditors of the company, not owners. In case of liquidation, they are paid before shareholders. Companies can issue secured debentures (backed by company assets) or unsecured debentures (backed only by the company’s reputation).