preemptive right

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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
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References in periodicals archive ?
Reportedly, the right to subscribe for shares shall, with derogation from the shareholders' pre-emption rights, vest in a limited number of external investors informed by the company.
Chair, Urs Rohner, said, 'We believe that keeping 100 percent of our valuable Swiss bank, while raising capital through a rights offering with pre-emption rights, is the right course of action and will result in significant value creation for shareholders over time.
43%), which was part of the original deal, have exercised their pre-emption rights on that asset.
Importantly, pursuant to the CCL the existing shareholders of a public joint stock company do not have pre-emption rights in respect of shares issued pursuant to an ESOP.
The transaction remains subject to several conditions, including the waiver of pre-emption rights by Anglo American's joint venture partner, Marubeni Coal Pty Ltd.
Nationally, people need to understand that given the current legislation and rulings by the STB, anyplace there is a railroad track in a neighborhood or through backyards, a railroad owner may purchase residential property and do anything they want under the federal pre-emption rights afforded to railroads.
The regulations mainly involve respect for prices and payment terms as well as priority for granting pre-emption rights.
There were also believed to be question marks over Mr Ashley's move, as pre-emption rights can mean existing shareholders have to be offered right of refusal ahead of an outside investor.
2% of the shares in Unity Trust have certain pre-emption rights in respect of the shares held by the Co-operative Bank.
3% TO RENEW THE DIRECTORS' AUTHORITY FOR THE DISAPPLICATION OF PRE-EMPTION RIGHTS 35,526,886 67.
Although the remaining shareholders of VAIT -- the two buy-out subsidiaries of co-operative regional bank Oberoesterreich, Erste Group Bank AG (WBAG:EBS) and UniCredit Bank Austria, part of Italian UniCredit SpA (BIT:UCG) -- have pre-emption rights for the shares, the possibility that they use these rights is low, VAIT head Karl Mistlberger told media OOeNachrichten.