Waiver of Pre-Emption Rrights (Issue of Shares)
Publisher one
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Jurisdiction
England and WalesCost
Free to useRelevant sectors
Type of legal document
💶 Pre-emption rights waiverBusiness activity
Waive pre-emption rightsA pre-emption rights waiver is a waiver of the right of a party to claim that a contract is voidable due to the existence of a prior contract between the parties. The waiver may be made in writing or orally, and is typically made prior to the formation of the new contract.
However, there may be situations where a company wishes to issue shares to specific parties, such as strategic investors, without seeking approval or offering them to existing shareholders. In such cases, a Waiver of Pre-Emption Rights template enables the company to legally waive these rights for a particular issuance. This template typically includes provisions specifying the detailed terms and conditions of the waiver and the scope of the share issuance exempt from pre-emption rights.
The document would outline the reasons justifying the need for the waiver, such as fulfilling a vital business objective, acquiring necessary funds for growth or expansion, or securing new partnerships or talent. It would also establish the restrictions, if any, on the use of funds generated by the share issuance and the steps to be taken to ensure compliance with applicable legal requirements during the process.
Overall, this legal template facilitates the transparent and lawful waiver of pre-emption rights, ensuring adequate disclosure and protection of shareholders' interests, while permitting a company to attract investment or undertake strategic transactions more efficiently.
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The template would outline the specific warranties that the seller is required to provide regarding the accuracy and compliance of the employee share plans and incentives, ensuring that the plans and incentives are properly documented, legally compliant, and in accordance with applicable laws and regulations, especially UK employment and tax laws.
Moreover, the template may address warranties related to the ownership and transferability of shares held by employees, any restrictions or limitations on the shares, any outstanding options or unvested shares, and the validity and enforceability of the employee share plan documentation. It may also cover warranties related to the accuracy of financial statements specifically relating to the expenses and costs associated with the employee share plans and incentives.
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