Question

what are called debenture holder ?​

Answer 1

Answer:

hope you help

Explanation:

Definition of a debenture

A debenture is a way that larger, public limited companies might borrow money at a fixed rate of interest. The company borrows money from the lender, who's then called a "debenture holder". ... Unlike shareholders, debenture holders can't vote at companies' general meetings.

Answer 2

Answer:

A person having the debentures is called debenture holder whereas a person holding the shares is called shareholder. A shareholder subscribes to the shares of a company. Shares are the parts of share capital. On the other hand, debenture-holders are the subscribers to debentures. Debentures are part of loan. A shareholder or member is the joint owner of a company; but a debenture holder is only a creditor of the company. Shareholders are invited to attend the annual general meeting of the company. Debenture holders are not invited, unless any decision affecting their interest is taken. Shareholders control the affairs of the company. It is managed by the Board of Directors, the elected representatives of the shareholders. Debenture holders are not concerned with the management and regulation of the company. Shareholders receive copies of the Annual Report containing the Balance Sheet, the Profit & Loss Account and the Auditor’s Report. Interest on debentures is payable whether there are profits or not. But dividend on shares is to be paid only when the company has earned profits. Interest on debentures may be paid out of capital but dividend on shares can never be paid out of capital. Rate of dividend on equity shares is not assured, whereas rate of interest on debentures is assured. Shares cannot be converted into debentures whereas debentures can be converted into shares. Convertible debentures which can be converted into shares at the option of debenture holder can be issued, while shares convertible into debentures cannot be issued. Debentures are generally secured and carry a charge on the assets of the company, whereas shares have no such charge.