Distinguish between Bearer debentures and registered debentures.

Bearer debenture
• This is a debenture payable to the holder or bearer.
• It is a negotiable instrument transferable by mere delivery and free from equities.
• A bonafide transferee acquires a good title.
• Bearer can sue the company in his own name.
Registered debenture
• This is a debenture issued to a registered holder i.e. registered by the company.
• It is payable to the registered person.
• The company has particulars of a specific person.
• It is transferable by the execution of an instrument of transfer.

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