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under the New Zealand companies act if a company wants to issue sheares for fundraising it has to First offer those shares to the existing shareholders in proportion to their existing shareholding before its able to offer them to any new shareholder whos in outside party the reason for this rule is to make sure the existing shareholders are protected from dilution of the shareholding by making them able to maintain their existing sheh holding percentage a sheers agreement can confirm this rule which is the usual position and add some additional Provisions around the time frame for acceptance of the companys offer of shares or it can override the rule and say no we want the board of directors to have full discretion to be able to issue shares to anyone at any time in any manner it sees fit this shareholders agreement doesnt contain anti-dilution Provisions commonly requested by investors which protect them from later um Fund Raising rounds at a lower price than what they paid if you