ABSTRACT
It has already been seen1 that borrowing is an important means by which a company can finance its activities and that the overwhelming majority of companies have the power, express or implied, to borrow money.2 If a company does not have such a power, any borrowing is technically ultra vires and void (although the transaction, almost certainly, may be validated by s 35). Any document by which a company creates or acknowledges a debt may be called a debenture, although this term is rarely applied to short term debts,3 indeed, the term tends to be used in business circles only to secured loans.
