Practical Law UK Glossary 0-107-6070 (Approx. 3 pages)
Glossary
Deferred shares
Shares with no right to dividends either for a set period or until certain conditions are met, for example, a certain level of profitability is achieved. Deferred shares often have limited capital rights and no right to vote. They are used in conjunction with convertible shares to ensure that there is no reduction of capital on a share conversion. For further details see Practice note, Conversion of shares.