12.7 PRE-EMPTIVE RIGHTS
Various subsections deal with the pre-emptive rights situation in that before shares are offered generally, the existing shareholders should have the right to take them up thereby retaining their shareholding percentage.
If we look at the short form MOI CoR 15.1A a standard clause 2.1(3) deals with the pre-emptive rights and refers to s 32 of the act.
The important thing to note is that after a share issue the ratio of shareholdings remain in the same proportion to what they were before the issue. It may be that one of the shareholders declines to take up the shares offered and in this situation the ratio of his shares held will reduce after the issue has taken place.
It is really a good idea to build all the rules on pre-emption into the MOI or the rules.