Distinguish between correspondence with a Debenture-holder and correspondence with a Shareholder/Member of a c

Distinguish Between · Q3

Q. Distinguish between correspondence with a Debenture-holder and correspondence with a Shareholder/Member of a company.

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Correspondence with debenture-holders and correspondence with shareholders/members differ on several points:

Basis	Correspondence with Debenture-holder	Correspondence with Shareholder/Member
Status of recipient	Creditor of the company	Owner/member of the company
Periodic return communicated	Interest, at a fixed rate, regardless of profit	Dividend, only out of profit, if declared
Notice of general meetings	Never sent — Section 71(2) bars any voting right	Regularly sent — a member has a vote to exercise
End of the instrument's life	Redemption (repayment of principal) or conversion into shares	No redemption for equity shares — a member's holding continues until transferred
Conversion possibility	Applicable only where the debenture is convertible	Not applicable — a share is already an ownership unit
Priority in tone/content	Businesslike information about a fixed contractual entitlement	Combines information with, at times, matters requiring the member's decision (e.g., resolutions to vote on)

Q.Distinguish between correspondence with a Debenture-holder and correspondence with a Shareholder/Member of a company.