Part 17

A company's share capital
Chapter 3

Allotment of equity securities: existing shareholders' right of pre-emption

Introductory

Meaning of “equity securities” and related expressions
560
1
In this Chapter—
- “equity securities” means—
  1. ordinary shares in the company, or
  2. rights to subscribe for, or to convert securities into, ordinary shares in the company;
- “ordinary shares” means shares other than shares that as respects dividends and capital carry a right to participate only up to a specified amount in a distribution.
2
References in this Chapter to the allotment of equity securities—
a
include the grant of a right to subscribe for, or to convert any securities into, ordinary shares in the company, and
b
do not include the allotment of shares pursuant to such a right.
3
References in this Chapter to the allotment of equity securities include the sale of ordinary shares in the company that immediately before the sale were held by the company as treasury shares.
S. 560(2)(3) substituted for s. 560(2) (1.10.2009) by The Companies Act 2006 (Allotment of Shares and Right of Pre-emption) (Amendment) Regulations 2009 (S.I. 2009/2561), reg. 2(2)
Pts. 1-39 (except for Pt. 7 and ss. 662-669), 45-47 extended (12.5.2011) by The Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order 2011 (S.I. 2011/1265), art. 5(1), Sch. 1 para. 2
Pts. 1-39 modified (31.12.2020) by Regulation (EC) No. 2157/2001, Art. AAA1(3) (as inserted by The European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1298), regs. 1, 97 (with regs. 140-145) (as amended by S.I. 2020/523, regs. 1(2), 5(a)-(f)); 2020 c. 1, Sch. 5 para. 1(1))
Pt. 17 Ch. 3 excluded (8.12.2017) by The Risk Transformation Regulations 2017 (S.I. 2017/1212), regs. 1(2), 176(4) (with reg. 189)