Pre-emption rights on allotment mean that all existing shareholders have to be allotted in proportion to their existing holdings when any new allotment is proposed. By default the pre-emption rights in the legislation apply unless disapplied in the articles (model articles in newer companies tend to keep them in). As this provision is rarely wanted in new allotments as they are typically being offered to different people or in different proportions the normal procedure is to disapply them by special resolution of the shareholders (resolution signed by at least 75% of the voting shareholders). This resolution will refer to the legislation and the article number(s) which are being disapplied and will require filing at Companies House when signed. You may also require directors' authority to allot shares although if there is only one share class and the company is formed under the Companies Act 2006 this is normally unnecessary. Share allotments are not necessarily as simple as people think and if not drafted and approved properly can be challenged at a later date.
