Waiver of pre-emption rights: share issue
Waiver by a shareholder of its pre-emptive rights on the issue of new shares
BackgroundÂ
Shareholders in a company may benefit from pre-emption rights in relation to the proposed allotment of new shares by the company. Pre-emption rights will entitle the existing to a right of first refusal over the new shares before they can be issued. The rights will either arise under the Companies Act 2006 or be set out either in the company’s Articles of Association or company’s Shareholders Agreement (or possibly both). Â
Can pre-emption rights be waived?
The Articles of Association and/or Shareholders Agreement may provide that the pre-emptive rights can be disapplied by shareholders who together hold a specified percentage of the total number of shares. To do this, each existing shareholder should sign a waiver of pre-emption rights.
About this pre-emption waiver
This waiver is for a shareholder to waive pre-emption rights which would otherwise apply in relation to a proposed issue of new shares by the company.
Document features
Features include:
- Alternative forms of waiver, depending on whether the waiving shareholder is an individual or a company
- Options depending on whether the pre-emption rights are in the Articles of Association or Shareholders Agreement
- Execution as a Deed
Explanatory guidance
As with all of our document templates, your purchase will include access to clear explanatory guidance on the document and its use.
All Paper Rock legal templates are written by highly qualified English lawyers that are currently practising in the field of commercial and corporate law. The templates you download here reflect the same quality as if you’d instructed our lawyers to draft them for you. They also write all our document descriptions so you can rest assured every bit of information is legally accurate up to date.
Whatever your method of purchase, there is no limit to the number of times you can download your templates. However, many customers prefer to invest in an annual subscription. This offers exceptional value with unlimited downloads from our entire document library.
The Paper Rock team is available to answer questions via Live Chat during UK business hours. When live chat is unavailable, email support@paperrock.com. We aim to respond to your emails within a 24-hour period. We also encourage you to ask questions via our social channels.Â