The following Tax guidance note provides comprehensive and up to date legal information covering:
This practice note explains what a rights issue is.
For more information on the corporate law aspects of rights issues, including the types of documents that rights issues involve, see:
Rights issues—key considerations (a subscription to Lexis®PSL Corporate will be required)
Rights issue—procedure for a listed company (a subscription to Lexis®PSL Corporate will be required)
List of documents—secondary offers—placing and open offer—Main Market (a subscription to Lexis®PSL Corporate will be required)
For more information on underwriting, see: Underwriting and sub-underwriting (a subscription to Lexis®PSL Corporate will be required).
For the tax considerations relevant to a rights issue, see:
Key CGT implications for shareholders in a rights issue
Stamp duty and SDRT implications of a rights issue, and
Key tax considerations for the issuer in a rights issue
A rights issue is:
an offer of new shares or other securities
made to existing shareholders of a company or of a particular class of shares in a company as at a specified date known as the record date
on a pro rata basis (ie in proportion (or as nearly as may be in proportion) to such shareholders' existing holdings of shares (or of a particular class of shares) in that company)
by way of a provisional allotment of the new shares on a nil paid basis to all the existing shareholders
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