JAMB - Commerce (2012 - No. 25)

In case of a liquidation of a public limited liability company, those that are first paid are
ordinary shareholders
prefernce shareholders
cumulative preference shareholders
debenture holders

Explanation

Debenture-holders are the subscribers to debentures. Debentures are part of loan. A shareholder or member is the joint owner of a company; but a debenture holder is only a creditor of the company. In the event of liquidation, they are paid first before any other class of lenders.

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