What Is The Difference Between Shareholders And Debenture-holders?

There are many differences between shareholders and debenture-holders of a company, all of which are illustrated further. A shareholder is the proprietor of the company. On the other hand, a debenture holder is the creditor of the company. Moreover shareholders have the right to attend General Meetings that the company holds, a privilege that the debenture-holder does not have. This, in turn, gives the shareholders the right to vote in the General Meeting as well. Once again as the debenture-holders are not allowed to attend the General Meetings, the case of voting does not apply to them in the first place. Furthermore a shareholder gets a share in the profit, which has a tendency to fluctuate. As for the debenture-holder, they get interest whose rate is fixed. Also where shares could be bought at discount, it is not the case with debentures, which could not be purchased at a discount rate. Lastly, shares could be bought back by a shareholder but a debenture holder could not buy the debentures back.

There are many differences like shareholder's are the owner if the company (in the ration of share owned) and debenture holder's or the bondholder's are the lender or creditor to the company. Debenture holder's have Prior rights on the company's assets in case of repayment of capital.

Shareholders are the persons who invest in company and they are the owners of that company.

Debentures are bonds issued under acknowledgment of any indebtedness. The company is bind to pay back the amount at a fixed time with interest at fixed fixed rate.   [in simple words it is just like a loan to the company]

The difference between shareholder and debenture holder is share holder are the owner of the company but debenture holder are the creditor of the company. Share holder can take part in management but debenture holder cannot take part in management.

Debenture Holders Are Lenders Who Lend Money To The Business Who Are Entitled To Interest Which Is Fixed. Whereas,  Share Holders Are People Who Invest Money When Business Needs That Money. And These Share Holders In Return Get A Percent Of The Profit Earned By The Company. 

Shareholders are actually stockholders. These are the individuals or companies who legally own one or more of the shares of stock in a joint stock company. The company is owned collectively by shareholders. The shareholders have a right to vote and they also have rights in the distribution of the income of the company.

On the other hand, Debentures are considered as the certificate of agreement of laons. These loans are given under the stamp of the company and have an undertaking that debenture holder will get fixed return as well as principal amount. This return is fixed on the basis of interest rate.

Thus debenture holders get a fixed return where as the return for shareholders is not fixed and is given as per the BOD's decision.