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Deferred Shares

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.

DEFERRED SHARES
[Post Image Courtesy of LekkyJustDoIt at FreeDigitalPhotos.net]

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

About Author Mohamed Abu 'l-Gharaniq

when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries.

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