In the event of the liquidation of a company, the first to be settled are?
Answer Details
In the event of the liquidation of a company, the first to be settled are debenture holders. Debentures are long-term debt instruments issued by companies to raise capital. They usually carry a fixed rate of interest, and the debenture holders have a right to receive interest and principal payments before any other class of shareholders. In the event of the liquidation of a company, debenture holders are paid before any other class of shareholders, including preference and ordinary shareholders, and members of the board.