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Answer» Debentures differ from shares in many respects. The main differences between the two are: | Shares | Debentures | | 1. Shares are part of the capital of the company. | 1. But debentures are part of the loan capital or loan of the company. | | 2. Shareholders, being owners, have voting rights. | 2. Debenture holders, being only loan creditors, do not have voting rights. | | 3. Shareholders are entitled to dividend. | 3. Debenture holders are entitled to interest. | | 4. Shares are not secured by a charge on the assets of the company. | 4. Debentures are, generally, secured by a charge on the assets of the company. | | 5. Shares can be forfeited. | 5. Debentures are not forfeited. |
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