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No,debenture holders are not treated as members.
Debentures are mere debts and debenture holders are just creditors.They give their money to the company at a fixed interest rate.Debenture holders being creditors get guaranteed interest, as agreed, whether the company makes profit or not.
Also debenture holders have no right to attend and vote at the meetings of the share holders.
Answered By:- Karunakar Gautam
DCE Student
What else can I help you with?
Is debenture holder a customer of the company?
NO,debenture holder is the creditor of the company
What is a debenture certificate?
it is a document that serve as evidence of a debenture for a debenture share holder
What is debenture certificate?
it is a document that serve as evidence of a debenture for a debenture share holder
Income earned by a debenture holder is called?
interest
What are the differences between share and debenture?
SHARES- 1.share holder is the real owner of the company.share holder have not fixed dividend rate.share holder have not maturity period.share are not redeemed.shares are more volatile.share holder have high risk.share holder have high return.share holder have right on residial income. DEBENTURE-1.debenture holder is the creditor of a company.they have fixed rate of interest.they have a maturity period.they dont have right to vote.debentures are redeemed.they are not volatile.they have no risk.they have low return.
What is Debenture Redemption Reserve?
Debenture is a debt instrument to raise funds. It has a maturity period associated with it. At the end of the maturity, the company(borrower) should return the interest and principal amount. Debenture Redemption Reserve is an amount kept as reserve for paying the debenture holder at the end of the maturity period.
In corporate law is trustee for debenture holder also known as a guarantor?
No, trustee is different from a guarantor.
What is the face value of a debenture?
The face value of a debenture, also known as its par value or principal amount, is the amount that the issuer agrees to pay the debenture holder at maturity. It is typically the original investment amount and is used to calculate interest payments, which are usually expressed as a percentage of the face value. For example, if a debenture has a face value of $1,000 and an interest rate of 5%, the holder would receive $50 in interest annually until maturity.
How is a debenture redeemed?
A debenture is typically redeemed at its maturity date, where the issuer repays the principal amount to the debenture holder. This can occur through a lump-sum payment or in installments, depending on the terms outlined in the debenture agreement. Additionally, issuers may have the option to redeem debentures early, often at a premium, under specific conditions. Redemption procedures and terms should be clearly stated in the debenture documentation.
What is the difference between preference share and debentures?
Debenture and Preference shares are often confused with each other,, Basically Preference share is an equity type instrument but debenture is a straight forward loan. Debenture bear fixed interest and its a TAX deductible expense. Company may goes into liquidation if it fails to pay interest on debenture. on the other hand company pay wish to choose not paying any dividend to preference share holder in any given period. debenture holder are lender to company Preference share holder owns the company
Difference between a debenture holder and Investor?
A debenture invests fund in the company and is sure of its return eventhough the company fails through its corporate stock. An investor can only gain depending upon the market condition.
Is A debenture holder of the company a creditor of the company?
No, A debenture bond owner is just like any other bond owner. A debenture bond is an uninsured bond. The owner of a bond is just lending their money to a company for a long-term period. A bond is an example of a long-term debt. An owner of a company would be an example of an equity such as a stockholder (common, or preferred).
