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Section 560: Meaning of "equity securities" and related expressions

Companies Act 2006 · 2006 c. 46View on legislation.gov.uk

Part 17: A company's share capital — Chapter 3: Allotment of equity securities: existing shareholders' right of pre-emption

In this Chapter—

  • "equity securities" means—

    (a)ordinary shares in the company, or

    (b)rights to subscribe for, or to convert securities into, ordinary shares in the company;

  • "ordinary shares" means shares other than shares that as respects dividends and capital carry a right to participate only up to a specified amount in a distribution.

References in this Chapter to the allotment of equity securities—

include the grant of a right to subscribe for, or to convert any securities into, ordinary shares in the company, and
do not include the allotment of shares pursuant to such a right.

References in this Chapter to the allotment of equity securities include the sale of ordinary shares in the company that immediately before the sale were held by the company as treasury shares.

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.