Section 573 | Disapplication of pre-emption rights: sale of treasury shares

(1)This section applies in relation to a sale of shares that is an allotment of equity securities by virtue of section 560(3)(sale of shares held by company as treasury shares).^F1

(2)The directors of a company may be given power by the articles, or by a special resolution of the company, to allot equity securities as if section 561 (existing shareholders' right of pre-emption)—

(a)did not apply to the allotment, or

(b)applied to the allotment with such modifications as the directors may determine.

(3)The provisions of section 570(2) and (4) apply in that case as they apply to a case within subsection (1) of that section.

(4)The company may by special resolution resolve that section 561—

(a)shall not apply to a specified allotment of securities, or

(b)shall apply to the allotment with such modifications as may be specified in the resolution.

(5)The provisions of section 571(2) and (4) to (7) apply in that case as they apply to a case within subsection (1) of that section.