Articles of Association: pre-emption (share allotment)
Standard Article comprising pre-emption rights on the allotment of new shares.
Background
What are pre-emption rights on the allotment of new shares?
Pre-emption rights give existing shareholders first refusal on an issue of new shares – the new shares must be offered to existing shareholders before they can be taken up by new investors or shareholders.
About this document
This document is a standard paragraph for inclusion in the Articles of Association of a company to provide for pre-emption rights on the allotment of new shares.
Document features
- pre-emption rights offer and acceptance process
- provision for pre-emptive rights to be disapplied with the consent of either a specified investor or the holders of not less than 75% of all of the shares in issue
- allowance for grant of options and allotment of shares under an employee share scheme
- requirement for adherence to any Shareholders Agreement
- ITEPA election wording for shares allotted to directors/employees
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