Disapplication

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Company law - good practice - pre-emption rights.

Pre-emption rights give existing shareholders in a company the right to subscribe for their pro rata share of any new shares in that company issued for cash.

Pre-emption rights provide existing shareholders with protection against dilution of their investments.

In this context, disapplication means a formal permission for the company to make an issue of equity - within predetermined limits - that does not include pre-emption rights for existing shareholders.


Statement of Principles - Pre-Emption Group - UK
"The Statement of Principles provides guidance on the factors to be taken into account by companies and investors when considering the case for disapplying pre-emption rights and provides a basis for open, constructive and early communication between companies and shareholders."
The Pre-Emption Group.


See also


Other resource