preemptive right

(redirected from Pre-Emptive Right)
Also found in: Thesaurus, Legal, Financial.
Related to Pre-Emptive Right: Subscription Rights

preemptive right

n.
The right of a company's existing stockholders to purchase enough shares to maintain their overall ownership percentage in the event of a new stock issue.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.preemptive right - the right granting to shareholders the first opportunity to buy a new issue of stock; provides protection against dilution of the shareholder's ownership interest
preemption, pre-emption - the right to purchase something in advance of others
Translations
신주인수권
Mentioned in ?
References in periodicals archive ?
The pre-emptive right may be provided by a company's charter if the number of its shareholders does not exceed 50.
Mike Chan, managing director of RHB, said that the company planned a joint venture, initially combined with a pre-emptive right to buy out the joint venture a few years down the road.
Botswana will not exercise its pre-emptive right to acquire an additional 10% stake in De Beers, the country's Ministry of Minerals, Energy and Water Resources, said earlier this week, officially announcing the Botswana Government's decision to withdraw from the deal.
The Tunisian ministry for technology and communications has asked Qatar Telecom to exercise its pre-emptive right to buy the 50 percent it doesn't own in Tunisiana from Orascom, the report said.
com, which is owned by businessman Othman Benjelloun, has already 5 percent share in Meditel and has the pre-emptive right in any future stake sale in the company.
LM Ericsson Telefon AB is to take up its pre-emptive right to buy a portion of the Symbian shares offered for sale by Psion Plc in a move to block Nokia Corp gaining majority control of the mobile operating system developer.
Although BHP had made a winning bid of $332 million for control of Caemi, Japan's Mitsui trading company used its pre-emptive right to buy 60% of Caemi's ordinary shares and raise its stake in the company to 100%.
was thwarted by Air New Zealand, which owns the other 50% and has the pre-emptive right to buy the News Corp.
The Chairman of the NOC has repeatedly stated publicly (most recently on May 22, 2009) that the NOC intends to exercise a pre-emptive right to acquire Verenex on the same terms and conditions as offered under the CNPCI Agreement.
Reference is made to the Company's announcements dated 10 November 2008, 16 August 2010, 6 May 2011, 18 December 2013 and 22 August 2014 in relation to the Datang Subscription Agreement, pursuant to which in case of any issue of new Shares by the Company, Datang has a pre-emptive right to purchase a pro rata portion of such new Shares being issued by the Company and the Company is required to notify Datang of such proposed issue.
Based on the current shareholders' agreement with MOL, Croatia has a pre-emptive right to MOL's INA shares in the case that MOL decides to divest them and Croatia could have a veto right in strategic issues as long as MOL has a 25% stake in INA.
During the placement InterRAO's minority shareholders can exercise their pre-emptive right to use shares in other publicly traded Russian utilities companies to purchase additional shares in InterRAO.