The founders ‘share are usually referred to as deferred shares because the holders?

Deferred shares are called so because the holders of these shares receive their dividends after other shareholders. This means that if a company issues both ordinary shares and deferred shares, the ordinary shareholders will receive their dividends first, and only after they have been paid will the deferred shareholders receive their dividends. Deferred shareholders are also not entitled to any dividends until the ordinary shareholders have been paid their dividends in full. This means that if the company does not make enough profit to pay dividends to both ordinary and deferred shareholders, the deferred shareholders may not receive any dividends at all. In some cases, deferred shareholders may be entitled to cumulative dividends. This means that if the company does not pay a dividend in one year, the dividend owed to the deferred shareholders will accumulate and be paid in a future year, before any dividends are paid to ordinary shareholders. However, this is not always the case, and the terms of the deferred shares will depend on the specific agreement between the company and the shareholders.