Pre-emption on transfer of shares: rights and remedies | Practical Law

Pre-emption on transfer of shares: rights and remedies | Practical Law

It is commonly assumed that where a shareholder sells his shares to a third party without first offering them to the other shareholders in accordance with a pre-emption clause, the other shareholders should be entitled to buy the shares from the third party. However, recent judgments suggest that this assumption is not well founded.

Pre-emption on transfer of shares: rights and remedies

Practical Law UK Articles 9-575-0906 (Approx. 6 pages)

Pre-emption on transfer of shares: rights and remedies

by Andrew Cooke, Herbert Smith Freehills LLP
Published on 23 Jul 2014United Kingdom
It is commonly assumed that where a shareholder sells his shares to a third party without first offering them to the other shareholders in accordance with a pre-emption clause, the other shareholders should be entitled to buy the shares from the third party. However, recent judgments suggest that this assumption is not well founded.