Check out Features of Debentures discussed below. So let us find out some information on features to know more about debentures.

Debenture Features :

The rates which is to be paid or payable on debentures is fixed.

Debenture may be convertible

No voting rights on debenture, holder does not have right to vote in a meeting.

Instrument of loan

Debentures can be redeemed after a fixed period of time.

Debenture holders can be considered as creditors of the company carrying a fixed rate of interest.

Debentures can be either unsecured or secures.

Interest of debentures can be payable even if there is a loss made by a company.

Appointment of trustee

The rate of interest payable are on the face value of the debentures.