The correct answer is B. Right shares are offered to existing shareholders in proportion to their existing shareholdings. This means that if a shareholder owns 100 shares in a company, they will be entitled to buy 100 new shares at a discounted price. This gives existing shareholders the opportunity to maintain their proportionate ownership of the company.
Option A is incorrect because directors are not necessarily shareholders. In fact, it is common for directors to hold a very small number of shares in the companies they serve.
Option C is incorrect because debenture holders are not necessarily shareholders. Debentures are a type of loan that a company can raise from investors. Debenture holders are not entitled to any ownership rights in the company.
Option D is incorrect because creditors are not necessarily shareholders. Creditors are people or companies that have lent money to a company. Creditors are not entitled to any ownership rights in the company.