English

A company cannot issue ______ with voting rights.

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Question

A company cannot issue ______ with voting rights.

Options

  • Equity shares

  • Debentures

  • Securities

MCQ
Fill in the Blanks
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Solution

A company cannot issue Debentures with voting rights.

Explanation:

Debenture holders are considered creditors of the company, not owners. Since voting rights are given only to the owners (equity shareholders) to control and manage the company, debenture holders are not entitled to such rights. Therefore, a company cannot issue debentures with voting rights.

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Procedure for Issue of Debentures
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Chapter 4: Issue of Debentures - Exercises [Page 76]

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Balbharati Secretarial Practice [English] Standard 12 Maharashtra State Board
Chapter 4 Issue of Debentures
Exercises | Q 1. A) 1. | Page 76

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