GENERAL KNOWLEDGE

Detailed explanation-1: -Deferred shares are those shares that does not have any rights to the assets of the company undergoing bankruptcy until equity and preference shares are paid off. Public limited company’s are not allowed to issue such shares. Was this answer helpful?

Detailed explanation-2: -No publicly traded firm or a subsidiary of a publicly traded company is permitted to issue deferred shares under the terms of the Companies Act. Instead, the company’s founders are given deferred shares at a low denomination to exercise their voting rights and maintain influence over the company’s operation.

Detailed explanation-3: -Expert-Verified Answer Public limited companies cannot issue Deferred shares. Deferred shares are those that have no rights to the assets of a bankrupt company until the equity and preference shares have been paid off.

Detailed explanation-4: -A private company is a firm held under private ownership. Private companies may issue stock and have shareholders, but their shares do not trade on public exchanges and are not issued through an initial public offering (IPO).

Detailed explanation-5: -In India deferred shares were issued prior to 1956. The Companies Act, 1956 prohibited public limited companies to have these shares and hence these securities cannot be issued by a public limited company in India.