Consider the following statements about a debenture: It is a debt instrument Its freely transferable Its holder has voting rights in company’s annual general meetings It is a part of company’s capital structure Which among the above statements is/ are correct?
Q. Consider the following statements about a debenture: It is a debt instrument Its freely transferable Its holder has voting rights in company’s annual general meetings It is a part of company’s capital structure Which among the above statements is/ are correct?
Answer: Only 1, 2 & 4 
Notes: Debenture is a debt instrument and freely transferable. It makes a part of company’s capital but its holders are NOT able to participating in the voting in the annual general meetings.

 

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