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Characteristics of Debentures

Check out Characteristics of Debentures discussed below. So let us find out some points on characteristics to know more about debentures. Check out related content on Advantages and Disadvantages of debentures.

Debentures Characteristics :

Debenture holders do not carry voting rights and debenture holders are considered as the creditors of the company.

The interest on debenture is to be paid at a fixed rate, and the rate of interest is decided during the annual general meeting of the company.

Debentures are secured and  repayable after a fixed period of time.

Debenture holders generally do not participate in the management of the company because they do not have any threat over existing control of the company.

Debenture are a part of borrowed fund capital as debentures holders are considered as the creditors of the company.

Debenture may be convertible.

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