Prepare the pre-emptive offer to existing shareholders before a share issue
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the proposed issue and the register, set out the class, the number of shares to be offered to each existing holder of that class in proportion to the shares of that class they already hold, and a statement with the number offered and the period the offer remains open. Do not issue the shares.
- What the lawyer must review
- The lawyer confirms the replaceable rule applies, settles the terms and the period, and decides what is done with shares that are not taken up.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Confirm the replaceable rule applies to this proprietary company and has not been displaced or modified by the constitution. It does not apply while the same person is both sole director and sole shareholder.
- Before issuing shares of a class, offer them to the existing holders of that class. As far as practicable, the number offered to each holder is in proportion to the shares of that class they already hold.
- The offer statement sets out the number of shares offered and the period for which the offer will remain open.
- Shares not taken up may be issued as the directors see fit. The company may, by resolution passed at a general meeting, authorise the directors to make a particular issue without complying with the offer.
Sources
- Corporations Act 2001 (Cth) s 254D · 2026-10-22
- Corporations Act 2001 (Cth) s 135 · 2026-10-22
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.