Debenture holder of a company are its
Reviewed by Dalvoy
UPSC Civil Services preparation
- AShareholders
- BCreditorsCorrect
- CDebtors
- DDirectors
Explanation
The correct answer is B because a debenture is a debt instrument used by companies to borrow money from the public. When an individual invests in a debenture, they are essentially lending money to the company for a fixed period at a specific interest rate. Therefore, the debenture holder becomes a creditor to whom the company owes money. Unlike shareholders, who are owners of the company, debenture holders do not have voting rights but have a prior claim on the company assets and profits for the repayment of their principal and interest.
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