Founders’ shares

Definition of Founders’ shares

In English Company Law, shares issued to the founders of (or vendors to) a public company as a part of the consideration for the business, or concession, etc., taken over, and not forming a part of, the ordinary capital. As a rule, such shares only participate in profits after the payment of a fixed minimum dividend on paid-up capital.

That's the definition of Founders’ shares in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.