Equity vs Debentures

Equity Shares :

1. Owners
2. Have voting rights and control
3. No fixed dividend rate
4. Dividend is an appropriation of profits
5. Non convertible
6. Shares are a part of Shareholders' funds in Balance Sheet
7. Only on liquidation
8. Maybe forfeited
9. Paid after all other liabilities settled

Debentures:

1. Lenders
2. No voting rights and control
3. Fixed interest rate
4. Interest is a charge against profits
5. Convertible
6. Debentures are a part of Long Term Borrowings
7. Are redeemable
8. Cannot be forfeited
9. Paid first on liquidation