Question:
Debenture holders are the
Debenture holders are the
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A debenture is a loan document, so its holder is a lender/creditor, not an owner.
Updated On: Sep 24, 2026
- Customers of the company
- Owners of the company
- Creditors of the company
- All of them
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The Correct Option is C
Solution and Explanation
Step 1: Recall what a debenture represents:
A debenture is a certificate acknowledging a loan taken by the company from the debenture holder, carrying a fixed rate of interest.
Step 2: Distinguish lending from owning:
Lending money to the company does not grant ownership or voting rights — it only creates a debt the company must repay, exactly the position of any outside lender.
Final Answer:
Debenture holders are Creditors of the company.
A debenture is a certificate acknowledging a loan taken by the company from the debenture holder, carrying a fixed rate of interest.
Step 2: Distinguish lending from owning:
Lending money to the company does not grant ownership or voting rights — it only creates a debt the company must repay, exactly the position of any outside lender.
Final Answer:
Debenture holders are Creditors of the company.
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