Section 28 — Canada Business Corporations Act: Pre-emptive right

If the articles so provide, no shares of a class shall be issued unless the shares have first been offered to the shareholders holding shares of that class, and those shareholders have a pre-emptive right to acquire the offered shares in proportion to their holdings of the shares of that class, at such price and on such terms as those shares are to be offered to others. Notwithstanding that the articles provide the pre-emptive right referred to in subsection (1), shareholders have no pre-emptive right in respect of shares to be issued for a consideration other than money; as a share dividend; or pursuant to the exercise of conversion privileges, options or rights previously granted by the corporation.