Share allotment and pre-emption (UK)

Directors need a power to allot under the Companies Act 2006 and the constitution: a private company with one class generally has the statutory power to allot shares of that class unless its articles restrict it; other cases may require authority under section 551. Statutory pre-emption can require specified equity securities for cash to be offered first to existing ordinary shareholders in proportion to holdings, subject to exceptions and valid disapplication. A rights issue offers existing shareholders a right to subscribe; a bonus issue capitalises reserves instead of requiring a fresh subscription.