Q. Consider the following statements about a debenture:
  1. It is a debt instrument
  2. Its freely transferable
  3. Its holder has voting rights in company’s annual general meetings
  4. 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.