Difference between Debenture holder and shareholder (Class 12)

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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)

BasisDebentureholderShareholder
StatusDebentureholder is the lender of the companyA shareholder is the owner of the company.
ReturnA debentureholder gets interest on his investment at the specified rate whether the company earns a profit or not.A shareholder gets a dividend.
ControlA debentureholder has no right to control the activities of the company by voting or otherwiseA shareholder has a right of control over the working of the company by attending and voting in the General Meeting.
RiskDebentureholders 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.
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