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.
Related article on Advantages and Disadvantages of Debentures for more information