BCL – L1 – SA – Q73 – Types of Capital

Whether a shareholder can be a debenture holder.

Question

A shareholder in a company can be/can’t be?

A can be its debenture holder

B cannot be its debenture holder

C alone can become its debenture holder

D must also become its debenture holder within a year of being a shareholder

Answer

Explanation:
The correct answer is A because a shareholder can also be a debenture holder, as there is no legal restriction preventing a person from holding both shares and debentures. Option B is incorrect as it imposes a false restriction, C is unclear, and D is incorrect as there is no mandatory requirement.

Tags: Company Law, Debenture Holders, Shareholders
Level: Level 1

Topic: Types of capital and the financing of companies

Uploader: Samuel Duah