| Commentary

131 Deferred shares

| Commentary

131 Deferred shares

The name ‘deferred shares’ is derived from the fact that their rights are usually made subject to the rights of other shares. The most common rights attached to shares of this nature are a right to a certain proportion of surplus profits in each year after payment of a dividend on any shares ranking before them, and, in the event of the company being wound up, a right to the whole or a certain proportion of surplus assets after repayment of the capital paid up on any shares ranking before them. They are rarely used nowadays.

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