The use of Jersey companies in cash box structures

A UK listed company (the Issuer) that wishes to raise cash by the issue of shares, otherwise than pro rata to its existing shareholders, is restricted by the pre-emption rights regime under the Companies Act 2006.

Shares issued for non-cash consideration are not subject to the same restrictions. Cash box structures allow an Issuer to raise cash by issuing shares without the need for a shareholder meeting, by enabling it to issue shares for non-cash consideration.

This guide describes some of the reasons for using cash box structures, how they work, and why Jersey companies are particularly well suited to cash box transactions.