Current Affairs

GK MCQs Section
Q. Consider the following statements:
  1. A debenture holder is also a creditor to the company.
  2. A debenture holder is also eligible to vote in the company.
Which of the above statements is/are correct?
Answer: Only 1
Notes: Statement 1 is correct as debenture holders lend money to the company and thus are its creditors. Statement 2 is incorrect because debenture holders are not shareholders and do not have voting rights in the company. Only shareholders enjoy such rights unless explicitly stated in the debenture agreement, which is uncommon.
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