Deed of Waiver of Pre-emption Rights

A Waiver of Pre-emption Rights can be used as an alternative to using the statutory procedures for disapplying pre-emption rights, such as passing a special resolution under s.570 Companies Act 2006.

Use this deed to waive pre-emption rights for a proposed allotment

This form of letter is designed to be signed by all the company’s shareholders.

The shareholders under this deed are waiving their pre-emption rights in respect of a proposed allotment of shares to be issued by the company.

Execution as a deed by all shareholders

It should be executed by the shareholders as a deed, meaning that it will need to be signed and witnessed.

When a waiver may be practical (unanimity) and when a special resolution may be easier

A waiver of this type will require the unanimous consent of all the shareholders so may only be practical for companies with a relatively small shareholder base.

A special resolution passed by written resolution will in contrast only require a 75% majority and therefore may be more practical if obtaining unanimity will prove difficult.

However for companies with a small and unified shareholder base, this waiver will be a very useful alternative to seeking formal disapplication via the special or written resolution procedure.

Deed of Waiver of Pre-emption Rights is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.