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droit d'allocation irréductible

English translation: rights issue (see explanation)

08:46 Mar 31, 2018
French to English translations [PRO]
Bus/Financial - Finance (general) / Information note re issue of new share capital
French term or phrase: droit d'allocation irréductible
Hi

This term appears in a notice advising that X has to decided to increase its share capital and this is to be financed by the issue of new shares. Holders of ordinary shares and preference shares "peuvent faire valoir un droit d'allocation irréductible par action ordinaire et action préférentielle pour y souscrire".

I have provisionally used "irreducible allocation right" but am not sure if that is the best or accepted term.

Thanks

Mark
Mark Radcliffe
United Kingdom
Local time: 04:28
English translation:rights issue (see explanation)
Explanation:
There is no straightforward, one-for-one EN translation for this specific expression. Here is one good explanation of what it means:

"Expression utilisée dans une augmentation de capital avec droit préférentiel de souscription dans laquelle les actionnaires actuels ont le droit à titre irréductible, c'est-à-dire qui ne peut pas leur être réduit, de souscrire à l'émission d'actions nouvelles au prorata de leur détention actuelle dans le capital de l'entreprise. Ainsi, un actionnaire qui détient 1% du capital, a le droit de souscrire à titre irréductible 1 % des actions nouvelles émises."

(Source: https://www.lesechos.fr/finance-marches/vernimmen/definition...

Basically, this is a feature of what we would in English call a rights issue, where existing shareholders are granted the right to purchase new shares in proportion to their existing shareholdings.

Trying to directly translate "droit d'allocation irréductible" is a mistake, because there simply is no direct, succinct equivalent for it in English. Rather, for the chunk of text you quoted, I would simply suggest something along the lines of "…may subscribe by exercising rights in proportion to their existing holdings of ordinary shares and preference shares." And I would find an opportunity, either before or after this sentence, to refer to the overall issue as a "rights issue" (perhaps where the French uses "augmentation de capital", which absolutely should not be translated "capital increase").
Selected response from:

Rob Grayson
United Kingdom
Local time: 04:28
Grading comment
Thank you
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +2rights issue (see explanation)
Rob Grayson


  

Answers


24 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +2
droit d\'allocation irréductible
rights issue (see explanation)


Explanation:
There is no straightforward, one-for-one EN translation for this specific expression. Here is one good explanation of what it means:

"Expression utilisée dans une augmentation de capital avec droit préférentiel de souscription dans laquelle les actionnaires actuels ont le droit à titre irréductible, c'est-à-dire qui ne peut pas leur être réduit, de souscrire à l'émission d'actions nouvelles au prorata de leur détention actuelle dans le capital de l'entreprise. Ainsi, un actionnaire qui détient 1% du capital, a le droit de souscrire à titre irréductible 1 % des actions nouvelles émises."

(Source: https://www.lesechos.fr/finance-marches/vernimmen/definition...

Basically, this is a feature of what we would in English call a rights issue, where existing shareholders are granted the right to purchase new shares in proportion to their existing shareholdings.

Trying to directly translate "droit d'allocation irréductible" is a mistake, because there simply is no direct, succinct equivalent for it in English. Rather, for the chunk of text you quoted, I would simply suggest something along the lines of "…may subscribe by exercising rights in proportion to their existing holdings of ordinary shares and preference shares." And I would find an opportunity, either before or after this sentence, to refer to the overall issue as a "rights issue" (perhaps where the French uses "augmentation de capital", which absolutely should not be translated "capital increase").

Rob Grayson
United Kingdom
Local time: 04:28
Specializes in field
Native speaker of: English
PRO pts in category: 805
Grading comment
Thank you

Peer comments on this answer (and responses from the answerer)
agree  writeaway
45 mins
agree  AllegroTrans: well explained
1 hr
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