This is a right for existing shareholders to have the 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 read the legal review which will be attached to the email you are sent after the pitch closes to 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?