State the position of debenture holders in a company.
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Position of debenture holder is like a creditor in a company.
A company issue debentures,which bear a fixed rate of interest. The debentures issued by a company is an acknowledgement of that the company has borrowed a certain amount of money which it promises to pay at a future date. thats why debenture holder is known as creditor of a company.
A company issue debentures,which bear a fixed rate of interest. The debentures issued by a company is an acknowledgement of that the company has borrowed a certain amount of money which it promises to pay at a future date. thats why debenture holder is known as creditor of a company.
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