Rights for existing shareholders to have first refusal on the issue of new shares by a company. These rights are deemed to be necessary to protect shareholders against dilution of their shareholdings. Unless pre-emption rights are specifically disapplied, generally, issues of equity securities for cash must be carried out on a pre-emptive basis, with the shares being offered to holders of relevant shares in proportion to their existing holdings (section 561, Companies Act 2006). For further details, see Practice note, Pre-emption rights: allotment of shares.