A Share is the part of the Capital and hence the Shareholder is the Owner of the Company whereas, a Debenture is the part of the Borrowed Capital and hence the Debenture Holder is the Creditor of the Company.
The shareholder will receive a share from the profit of the Company which is called as the dividend whereas the debenture holder will be eligible for a fixed rate of interest from the Company.
The Payment of dividend is the appropriation of Profit where the Interest is the charge on the Profit.
The shares can only be transferred and cannot or need not to be returned by the Company during its lifetime whereas, the debentures are issued only for a fixed period and need to be returned after that period.
Shares cannot be secured by any charge on the assets of the Company, whereas debentures are generally secured and carry a fixed or floating charge over the assets of the Company.
Shares cannot be converted into Debentures, whereas debentures can be converted into shares of the Company.
Shareholders have the voting rights, whereas, the debenture holders do not enjoy any voting rights.
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Also Check:
1. Form - ITR-U | Meaning | Applicability...[ Ссылка ]
2. TCS on Sale of goods | Sec-206C(1H) | Applicability...[ Ссылка ]
3. How to Register Private Limited Company in India 2022-23....[ Ссылка ]
4. All you need to know before starting a Sole Proprietorship Firm in India...[ Ссылка ]
5. FORM-10BD | FORM-10BE Certificate | Explained in detailed....[ Ссылка ]
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