Difference between Debenture holder and shareholder (Class 12)
Looking for the difference between debenture holder and shareholder as per the syllabus of class 12 CBSE, ISC, and state boards
this topic is concerned with the Accounting for debentures chapter of Accountancy class 12.
I have explained this topic in detail.
Distinction between Debentureholder and shareholder (Class 12)
| Basis | Debentureholder | Shareholder |
| Status | Debentureholder is the lender of the company | A shareholder is the owner of the company. |
| Return | A debentureholder gets interest on his investment at the specified rate whether the company earns a profit or not. | A shareholder gets a dividend. |
| Control | A debentureholder has no right to control the activities of the company by voting or otherwise | A shareholder has a right of control over the working of the company by attending and voting in the General Meeting. |
| Risk | Debentureholders are relatively safe. Secured debentureholders are almost free from risk. | Shareholders are at a greater risk. They can even lose the amount invested in shares. |
