Which of the following are correct statements about the relationship between a company's ordinary shares and its debentures? Select all that apply.
A、Debentures do not confer voting rights, whilst ordinary shares do.
B、The company's duty is to pay interest on debentures, and to pay dividends on ordinary shares.
C、Interest paid on debentures is deducted from pre-tax profits, dividends are paid from net profits. D
A、debentureholder takes priority over a member in liquidation.
A、Debentures do not confer voting rights, whilst ordinary shares do.
B、The company's duty is to pay interest on debentures, and to pay dividends on ordinary shares.
C、Interest paid on debentures is deducted from pre-tax profits, dividends are paid from net profits. D
A、debentureholder takes priority over a member in liquidation.
【参考答案及解析】
A, C and D are correct. Whilst the company has a contractual duty to pay interest on debentures, there is no duty on it to pay dividends on shares. B is therefore incorrect.
A, C and D are correct. Whilst the company has a contractual duty to pay interest on debentures, there is no duty on it to pay dividends on shares. B is therefore incorrect.