UK Companies Act 2006
Parts 17 to 18: Share capital (allotment, pre-emption, reduction, own shares) – UK Companies Act 2006

UK Companies Act 2006 561-577: Existing shareholders' right of pre-emption on allotments of equity securities for cash

What does 561-577 require?

A company must not allot equity securities on any terms to a person unless it has first offered to each holder of ordinary shares, on the same or more favourable terms, a proportion as nearly as practicable equal to their existing holding, and the period for acceptance (at least 14 days) has expired or every offer has been accepted or refused (sections 561, 562), subject to the exceptions for bonus shares, non-cash consideration and employees' share schemes (sections 564 to 566) and to exclusion or disapplication by the articles or by special resolution (sections 567 to 573). Contravening directors are jointly and severally liable to compensate the persons to whom an offer should have been made (section 563).

Maintained by Gerard Blokdyk

Other controls in Parts 17 to 18: Share capital (allotment, pre-emption, reduction, own shares) – UK Companies Act 2006

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