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Question
State True/False with reasons:
Debenture holders enjoy full membership rights of the company.
State True/False with reasons:
Debenture holders enjoy full membership rights of the company.
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Solution
The correct option is B False
(i) Debenture Capital is borrowed capital.
(ii) So debenture holder is a creditor and not the owner.
(iii) Equity shareholders are the owners of the company.
(iv) So equity shareholders enjoy full membership rights of the company.
(v) Debenture holders do not get voting right and do not participate in the management of the company.
(vi) Hence debenture holders do not enjoy full membership rights of the company.
(i) Debenture Capital is borrowed capital.
(ii) So debenture holder is a creditor and not the owner.
(iii) Equity shareholders are the owners of the company.
(iv) So equity shareholders enjoy full membership rights of the company.
(v) Debenture holders do not get voting right and do not participate in the management of the company.
(vi) Hence debenture holders do not enjoy full membership rights of the company.
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