The correct answer is option 3- A company always issue debentures with voting rights.
* A company always issue debentures with voting rights- This is false as Companies do not issue debentures with voting rights. Shareholders enjoy voting rights whereas debenture holders do not normally enjoy any voting right.
OTHER OPTIONS-
- A company provide interest to debentureholders- Debenture holders are creditors of the company. When a company issues debentures, it is essentially borrowing money from investors, and in return, it agrees to pay interest on the debentures at a fixed rate. For example, if a company issues 12% debentures, it will pay the debenture holders 12% interest annually on the face value of the debentures. This interest is a liability for the company and is generally paid before any dividends are distributed to shareholders.
- A Company can issue convertible debentures- Debentures which are convertible into equity shares or in any other security either at the option of the company or the debenture holders are called convertible debentures. These debentures are either fully convertible or partly convertible.
- A company can issue redeemable debentures- Redeemable debentures are those which are payable on the expiry of the specific period either in lump sum or in Installments during the life time of the company. Debentures can be redeemed either at par or at premium.
|
