Allotment of shares and disapplication of pre-emption rights: checklist

by Practical Law Corporate

A checklist setting out the procedural steps under the Companies Act 2006 (CA 2006) for allotting and issuing shares and disapplying the statutory pre-emption right. It guides users through the essential preparatory steps, such as determining whether an exception to the requirement for authority to allot applies. It also outlines the process for obtaining the necessary authority to allot under section 550 or section 551 of the CA 2006, addressing scenarios for both private and public companies. The resource also provides a framework for navigating the statutory pre-emption right, including its exceptions and the procedures for disapplying it under sections 569, 570 or 571 of the CA 2006. It covers the practical implementation of an allotment, from convening board meetings to passing members' resolutions, and details post-allotment obligations. It also addresses additional considerations for listed commercial companies under the UK Listing Rules (UKLR).