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Allotment of new shares with pre emption rights (Monday, 10 August 2009) Written by Shiraz Ahmad I am in the process of alloting new shares in a Ltd company and the Company's Articles and Investor Agreement contain a pre emption rights clause requiring them to be offered to the existing investors in proportion to their existing share ownership. My question is; When writing to the Company investors to offer the new shares: should I - 1. offer them at the premium rate stating that in absence of them renouncing the shares this will be interpreted as acceptance. or, 2. offer the investors the shares, asking for express acceptance in via writing? My preference would be the latter and not for an absence of a response to be construed as acceptance. Would there, in this process, also be any legal protocol for whether the shares are offered at nominal or premium rates? Any links to templates would be much appreciated. Thanks!

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