The directors of Zed Ltd issued a number of shares to their supporters, so that...

If the shares were issued for cash, they should have first been offered to the existing members in proportion to their current shareholding unless statutory pre-emption rights have been dis-applied.

If the shares were issued for a non-cash consideration, they were not subject to the statutory pre-emption rights of shareholders unless the articles of association so provided.

If the directors had the legal authority to issue shares, the issue cannot be challenged by the shareholders.

The share issue is voidable and the original shareholders may ratify or cancel the issue by ordinary resolution.