There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.
Assertion (A): Debenture holders do not enjoy any voting rights.
Reason (R): A debenture holder lends money and become an owner of the company with the purchase of debentures.
Answer & explanation
Correct answer: option 4
The correct answer is option 4- (A) is true, but (R) is false.
Assertion (A): Debenture holders do not enjoy any voting rights. This is true. Shareholders enjoy voting rights whereas debentureholders do not normally enjoy any voting right
Reason (R): A debenture holder lends money and become an owner of the company with the purchase of debentures. This is false as Debenture holders are only the creditors of the company as debentures are part of the borrowed capital of the company. They do not have any voting rights and cannot participate in the company's affairs.