This is a right for existing shareholders to have first refusal on the issue of new shares by a company. These rights protect shareholders against dilution of their shareholdings. Where pre-emption rights apply, shares are offered to holders of relevant shares in proportion to their existing holdings. Generally businesses raising funds on Crowdcube will only offer pre-emption rights to A Ordinary shareholders, however every pitch is different so always be sure to check the pitch page to confirm what type of shares are being offered in exchange for your investment.
Articles in this section
- Will receiving a reward for my investment affect EIS?
- What is equity crowdfunding?
- How can I make a return on my investment?
- How many exits have there been from equity investments made through Crowdcube?
- What are the risks of investing in equity crowdfunding?
- Am I protected as an investor?
- Are the investments I make on Crowdcube covered by the Financial Services Compensation Scheme?
- What is Crowdcube's equity crowdfunding due diligence process?
- Can Crowdcube give me advice on what to invest in?
- What is your complaints procedure?