Part 17A company's share capital

Chapter 3Allotment of equity securities: existing shareholders' right of pre-emption

Exceptions to right of pre-emption

F1566AException to pre-emption right: companies in financial difficulty

Section 561(1) (existing shareholders’ right of pre-emption) does not apply to an allotment of equity securities that is carried out as part of a compromise or arrangement sanctioned in accordance with Part 26A (arrangements and reconstructions: companies in financial difficulty).