FOUNDERS' SHARES, a class of British joint stock com pany shares once not uncommon but now almost unknown. Foun ders' shares were created by company promoters who desired to retain in their hands a considerable part of the profits of a com pany which they floated. They effected this purpose by issuing to themselves or their friends or nominees a limited class of shares termed founders' shares, usually of small face value, which were to receive the entire profits of the company after the pay ment of certain fixed rates of profit upon the shares subscribed for by the public. In many cases such founders' shares became exceedingly valuable. The practice fell into bad repute, and ac cordingly ceased. But after the World War a practice arose of promoting British joint stock companies with capital divided into Ordinary or Preference shares of Li each, and Deferred shares of one shilling each. When each share in such a company possesses one vote, when the deferred shares receive all the profits after a certain fixed rate on the L 1 shares, and when the promoter or vendor allots to himself the greater part of the deferred shares a position obtains in which the public subscribes the greater part of the capital, while the promoter or vendor gets the control of the business and the greater part of its profits. In such a case, the deferred shilling share becomes nothing more or less than the old and discredited founders' share.