Statement of Principles

Company law - good practice - listed companies - pre-emption rights - UK - Pre-Emption Group.

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, the Statement of Principles published by the UK's Pre-Emption Group seeks to provide clarity on the circumstances in which a degree of flexibility might be appropriate, and the factors to be taken into account.

See also

• An introduction to equity capital
• Company law
• Dilution
• Disapplication
• Equity
• Equity capital
• Equity capital market (ECM)
• Good practice
• Intermediary
• Investor
• Law
• Listed company
• Pre-Emption Group (PEG)
• Pre-emption rights
• Rights issue
• Shareholders
• Shareholders' agreement

Other resource

• Statement of Principles - the Pre-Emption Group