Week 13 - Issue of Shares

Question 1

Generally, who must shares be offered to first?

Answer 1

Must be offered to existing shareholders first (pre-exemption rights)

Question 2

When can private companies not be bound by pre-exemption?

Answer 2

If they set up articles that are registered in the companies house - adding a special resolution - needs to be done from when they first register company

Question 3

How can a public company dis-apply pre-emption rights?

Answer 3

By special resolution - listing rules may apply though e.g if selling on stock exchange

Question 4

How much percentage of the vote has to go on a special resolution?

Answer 4

75%