Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
Debenture holders do not have .................. rights in the company.
Options:
Interest
Voting
Both of these
None of these
Correct Answer:
Voting
Explanation:
Individuals or entities who hold debentures (a form of company debt) generally do not have the right to vote on company matters or decisions, unlike shareholders who often have voting rights in the company. Debenture holders are considered creditors and have a financial interest in receiving their principal and interest payments but do not have a say in the company's management or decision-making processes.