Founder Shares

Founder Shares are shares owned by a founder member, entitling them to participate in governance. Normally, only one Founder Share is issued to each person involved in the formation of the company.

Founder Shares are defined in Clause 10(i) as follows:

• Founder Shares: issued at par value to the natural or legal persons who found the enterprise; non-transferable; one vote per shareholder at General Meetings (except as defined in Clauses 23 and 24); 1p fixed preference dividend; forfeited on holder's death, bankruptcy or insolvency; cancelled without payment on winding up.

Founder Shares become important when there is a Special Resolution as a majority of Founders must agree with the decision for it to be valid and binding.

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