How long do shareholders have to make decisions regarding their rights under pre-emption rights (PAL)?

Shareholders have 14 days to make decisions regarding their rights under pre-emption rights. Pre-emption rights allow existing shareholders to maintain their proportionate ownership of a company when new shares are issued by giving them the first option to purchase additional shares before they are offered to new investors. This time frame is significant because it provides shareholders with a clear and legally established period to evaluate their options and make informed decisions about whether to exercise these rights.

The 14-day window ensures that shareholders are not left waiting indefinitely to respond to a new share issue, while also allowing them sufficient time to assess their financial position and the potential impact of their decision. This period is standard practice in many jurisdictions to protect shareholder interests and maintain equity among existing shareholders during capital-raising activities.

Understanding the duration of this decision-making window is crucial for shareholders as it influences their investment strategy and the management of their ownership stakes in a company.