Ordinary share capital

Debt

a)

b)

c)

d)

e)

f)

g)

h)

i)

It is a permanent finance

Return paid when available

Dividends are not tax allowable

Unsecured finance

Carry voting rights

Reduces gearing ratio

No legal obligation to pay

Has a residue claim

Owners' money

a)

b)

c)

d)

e)

f)

g)

h)

i)

It is refundable (redeemable)

It is fixed return capital

Interest on debt is a tax allowable expense

Secured finance

No voting right

Increases gearing ratio

A legal obligation to pay

Carries a superior claim

Creditors finance.