According to professor L.C.B Grower, There are two classes of Company's securities, first class is described as shares and second as debentures. Share and debenture holders both invest their money into the company and both get returns on their investment.
Key differences between shareholders and debenture holders which are as follows -
1) Difference/Distinction between Shares and Stock | Company Law
2) Shares: Meaning and Kinds of Shares | Company Law
3) Commercial Bank : Primary, Secondary and Modern Functions of Commercial Bank
4) What is Insurance? Meaning, Definition and Kinds of Insurance.
5) Characteristics of Joint Stock Company
Distinction/Difference between shareholders and debenture holders -
Key differences between shareholders and debenture holders which are as follows -
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No
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Shareholders
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Debenture holders
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1.
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The shareholders have the right to control and interference in the company's affairs.
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Like shareholder, the debenture holders have no control in the company's affairs
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2.
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The shareholders are entitled to get dividends only out of profit.
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The debenture holders are entitled to a fixed rate of interest, whether the company runs on profit or loss.
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3.
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The shareholder cannot be paid up as long as the company is a Going Concern.
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Except in case of perpetual debenture holders, the company can pay back the debenture holders
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4.
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The shareholders are paid back only after all other claims have been paid.
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ordinarily, A debenture holder being a secured creditor, in winding up, is paid as a Priority
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See also...
1) Difference/Distinction between Shares and Stock | Company Law
2) Shares: Meaning and Kinds of Shares | Company Law
3) Commercial Bank : Primary, Secondary and Modern Functions of Commercial Bank
4) What is Insurance? Meaning, Definition and Kinds of Insurance.
5) Characteristics of Joint Stock Company