The term debenture is defined in the companies act as,” Debenture includes debenture stock, bounds any other securities of a company whether constituting a charge on the assets of the company or not”.
Difference between shareholders and debenture-holders are discussed in detail as follows like a shareholder or member is joint owner of the company; but a debenture-holder is only a creditor of the company
In case of unsecured debentures, the holder is an ordinary unsecured creditor. If the company defaults in the payment of principal or interest he may sue for the principal or interest and after judgment levy execution…