| Commentary

132 Founders’ shares

| Commentary

132 Founders’ shares

Founders’ shares are infrequently used. Originally, the name ‘founders’ shares’ was given to them because they were usually taken by the persons founding the company in part payment of the consideration payable for the property sold by them to the company. The rights attached to such shares were usually similar to those of deferred shares, and in the case of prosperous companies such shares were often of great value. Nowadays, founders’ shares are sometimes created to give special rights (voting and dividend) to the initial promoters of the company.

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