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.