Section 55: Pre-emptive rights to new issues
consolidated text (as at 2018, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
55. Pre-emptive rights to new issues
(1) Subject to its constitution, where a company issues shares which
rank equally with, or in priority to existing shares as to voting or distribution
rights, those shares shall be offered to the holders of existing shares in a
manner which would, if the offer were accepted, maintain the relative voting
and distribution rights of those shareholders.
(2) An offer under subsection (1) shall remain open for acceptance for a
reasonable time, which shall not be less than 14 days.
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Questions this section answers
- Must new shares be offered first to existing shareholders to protect their voting rights?
- How many days must a pre-emptive share offer stay open for acceptance?