Module III· ECM — Follow-on, ABB, Rights IssueAdvanced
Question

When may pre-emption rights be excluded under Section 186(3) AktG?

Answer

Under German law, pre-emption rights can be excluded in certain cases, including simplified exclusion for cash capital increases up to 10% of share capital if the issue price is not materially below market price. Exact requirements and limits must be checked with counsel. In practice, this enables quicker placements such as ABBs within legal constraints.