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Deferred Shares


Deferred shares also called as founder shares because these shares were normally issued to founders. The shareholders have a preferential right to get dividend before the preference
shares and equity shares. According to Companies Act 1956 no public limited company or which is a subsidiary of a public company can issue deferred shares.

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These shares were issued to the founder at small denomination to control over the management by the virtue of their voting rights.

Sourced From: Financial Management By C. Paramasivan And T. Subramanian
Deferred Shares Deferred Shares Reviewed by Blog Editor on Sunday, March 12, 2017 Rating: 5

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