Companies Act 2014 section 1249

Authority to allot and pre-emption rights in the case of a PUC

Section 1249 applies the rules on authority to allot shares and pre-emption rights (as set out in sections 1021 to 1023 for PLCs) to public unlimited companies (PUCs).

• The rules governing directors' authority to allot shares in a PLC also apply to a PUC.
• Pre-emption rights, which give existing shareholders the first right to subscribe for new shares, apply equally to a PUC.
• The interpretation and supplemental provisions relating to pre-emption rights under sections 1021 to 1023 extend to a PUC.
• This ensures that PUC shareholders enjoy the same protections against dilution of their holdings as PLC shareholders.