without having made a payment on something which one is nonetheless entitled to trade in The shareholders may also sell their rights to subscribe in the issue nil paid.
- The shareholders may subscribe for shares by the company issuing a provisional nil paid allotment of shares.
- The nil paid right to subscribe would be valid for 21 days on the open market.
- The new law will prohibit directors from trading in nil paid shares in their own company.
- Nil-paid rights are only the right to acquire more shares at the current share price or a discount. If the shareholders decide to exercise the rights, they must pay for the securities they are given the right to buy.