Pre-emption rights in UK company law give existing shareholders the first opportunity to buy new shares before they are offered to others, ensuring their ownership percentage remains unchanged.
A reduction of capital refers to the process whereby a company decreases its share capital, typically to return excess capital to shareholders or to write off losses. This action is governed by the Companies Act 2006 and requires specific resolutions and conditions to be fulfilled.
A binding decision made by the members of a company, either via voting at a general meeting or by unanimous informal consent, as recognized under UK company law and stipulated in the Companies Act or company articles.
A special resolution is a resolution of the members of a company that must receive the approval of at least 75% of the members to be valid. It’s a crucial mechanism for making significant changes within a company, requiring thorough notice to all members and detailed information about the proposed resolution.
Under the Companies Act 2006, a written resolution is signed by a majority of company members and treated as effective even though it is not passed at a properly convened company meeting.
