| Commentary

139 Existing shareholders’ right of pre-emption

| Commentary

139 Existing shareholders’ right of pre-emption

Where a company wishes to allot equity securities to a person on any terms it must first offer those shares pro rata to each person who holds ordinary shares in the company on the same or more favourable terms1. The company must then wait until the offer period has expired, or it has received notice of the acceptance or refusal of all the offers made, before going ahead with the allotment2. For these purposes, ‘equity securities’, means ordinary shares in the company, or rights to subscribe for, or to convert securities into, ordinary shares

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