Non-pre-emptive issue: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
(Create page - source - Statement of Principles - the Pre-Emption Group) |
No edit summary |
||
| Line 14: | Line 14: | ||
:Such proposals should be considered by shareholders on a case-by-case basis... | :Such proposals should be considered by shareholders on a case-by-case basis... | ||
:A wide variety of financing options are available to companies. Companies should explain [to shareholders] why a non-pre-emptive issue of equity securities is the most | :A wide variety of financing options are available to companies. Companies should explain [to shareholders] why a non-pre-emptive issue of equity securities is the most appropriate means of raising capital, and why other financing methods have been | ||
appropriate means of raising capital, and why other financing methods have been | |||
rejected." | rejected." | ||
| Line 48: | Line 47: | ||
==Other resource== | ==Other resource== | ||
*[https://media.frc.org.uk/documents/PEG_Statement_of_Principles.pdf Statement of Principles - the Pre-Emption Group] | *[https://media.frc.org.uk/documents/PEG_Statement_of_Principles.pdf Statement of Principles - the Pre-Emption Group] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Financial_products_and_markets]] | [[Category:Financial_products_and_markets]] | ||
Revision as of 16:17, 23 June 2024
Company law - good practice - listed companies - pre-emption rights - disapplication.
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, a non-pre-emptive issue of equity is an issue that does not include pre-emption rights for existing shareholders.
- Requesting a disapplication of pre-emption rights
- "A specific disapplication of pre-emption rights is one sought by a company for the purpose of an identified, proposed issuance of equity securities...
- Such proposals should be considered by shareholders on a case-by-case basis...
- A wide variety of financing options are available to companies. Companies should explain [to shareholders] why a non-pre-emptive issue of equity securities is the most appropriate means of raising capital, and why other financing methods have been
rejected."
- Statement of Principles - the Pre-Emption Group - 2022 - p10.
See also
- An introduction to equity capital
- Cash box placing
- Company law
- Dilution
- Disapplication
- Equity
- Equity capital
- Equity capital market (ECM)
- Good practice
- Intermediary
- Investor
- Issuance
- Issue
- Law
- Listed company
- Pre-Emption Group (PEG)
- Pre-emption rights
- Rights issue
- Security
- Shareholders
- Shareholders' agreement
- Statement of Principles (pre-emption rights - UK)
