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
- How is the valuation of a company calculated?
- Who can invest?
- How do I make an investment?
- How many investments can I make in a single pitch?
- Can Crowdcube give me advice on what to invest in?
- Can I invest in equity pitches via a Company or SIPP?
- What are A Ordinary Shares and B Investment Shares?
- What happens if the target amount is not reached?
- What is overfunding?
- What happens after I have invested?