New Clause 78

Company Law Reform Bill [Lords] – in a Public Bill Committee at 1:45 pm on 20th July 2006.

Alert me about debates like this

Disapplication of pre-emption rights: sale of treasury shares

‘(1) This section applies in relation to a sale of shares that is an allotment of equity securities by virtue of section (Meaning of “equity securities” and related expressions)(2)(b) (sale of shares held by company as treasury shares).

(2) The directors of a company may be given power by the articles, or by a special resolution of the company, to allot equity securities as if section (Existing shareholders’ right of pre-emption) (existing shareholders’ right of pre-emption)—

(a) did not apply to the allotment, or

(b) applied to the allotment with such modifications as the directors may determine.

(3) The provisions of section (Disapplication of pre-emption rights: directors acting under general authorisation)(2) and (4) apply in that case as they apply to a case within subsection (1) of that section.

(4) The company may by special resolution resolve that section (Existing shareholders’ right of pre-emption)—

(a) shall not apply to a specified allotment of securities, or

(b) shall apply to the allotment with such modifications as may be specified in the resolution.

(5) The provisions of section (Disapplication of pre-emption rights by special resolution)(2) and (4) to (7) apply in that case as they apply to a case within subsection (1) of that section.’.—[Margaret Hodge.]

Brought up, and added to the Bill.