The pre-emption right can be varied in the Articles of Association of the company and the directors might be given power by the Articles or members’ special resolution to allot shares as if this pre-emption right did not apply. Existing shareholders can also waive this right if they choose to do so. The pre-emption right does not apply to bonus shares, an issue of shares for non cash consideration or an issue of shares to be held under an employee share scheme. If a Shareholders Agreement exists this may also restrict the issue of shares.