Debentures are classified into three classes: (a) Debentures payable to a registered holder, and debentures payable to a bearer. (b) Secured and unsecured debentures. (c) Redeemable and perpetual debentures.
Debentures are issued in accordance with the provisions of the articles, usually by a resolution of the board of directors. Debentures may be issued at par, at a premium, or at a discount if permitted by the articles of the company. Debentures unlike shares may be issued at a discount without any restriction.