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Issue of Debentures — Secretarial Practice STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsSecretarial PracticeIssue of Debentures4 Marks
Question
Debenture holders do not enjoy any voting rights.
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Answer

  • The company borrows a large amount of money by issuing debentures.
  • Debentures are considered to be the long-term loan that is repaid after a long period.
  • Debenture holders are the creditors of the company.
  • The company has to pay interest to the debenture holders even if the company makes a loss in the current year.
  • Thus, it is rightly said that debenture holders do not enjoy any voting rights.

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