Which of the following statement is true regarding debentures?

A) Issued in form of certificate
B) Written acknowledgement of debt
C) Have voting rights 
D) Issued with specified rate of interest
E) Generally secured by charge on assets
F) Issued under common seal of company
G) Conversion into bonds after specific period

Choose the correct answer from the options given below.

ABDEF

The correct answer is option 4- ABDEF.

C) Have voting right-  This is false because Shareholders enjoy voting rights whereas debentureholders do not normally enjoy any voting right.

G) Conversion into bonds after specific period- This is false because debentures and bond are same. these words can be used interchangeably. Debentures can be converted into shares if they are convertible debentures.

ALL OTHER STATEMENTS ARE TRUE.

The term 'debenture' originates from the Latin word 'debere,' which means to borrow. A debenture is a written document issued with the company's official seal, acknowledging a debt. It serves as a contractual agreement, outlining the repayment of the principal amount either after a set period, at regular intervals, or at the discretion of the company. Additionally, it stipulates the payment of interest at a fixed rate, typically on semi-annual or annual schedules, with specific due dates. Shares are not secured by any charge whereas the debentures are generally secured and carry a fixed or floating charge over the assets of the company.