preemptive right

(redirected from Pre-emption rights)
Also found in: Thesaurus, Legal, Financial.

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 ?
Resolution 10: To allot ordinary shares in accordance with statutory pre-emption rights.
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.
Worldview Capital Management ( " Worldview " ), an investment management group based in Switzerland, the UK (FCA authorised) and the USA, has today urged shareholders to vote against the wholly unjustified removal of pre-emption rights at the forthcoming Extraordinary General Meeting of Petroceltic International plc ( " Petroceltic " or the " Company " ) on 9 June 2014 (the " EGM ").
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.
The Board of Directors has approved the issue of Convertible Enhanced Capital Securities (CECS) of up to e1/4294 million through pre-emption rights to all existing shareholders.
87% of the share capital of UOL but decided to give up its pre-emption rights.
Eni has the option to terminate the SPA following an exercise by Tullow of its pre-emption rights.
The acquisition, however, may not include Fermiers Landais, as agricultural cooperative Maisadour could apply pre-emption rights
The resolution asked them to waive pre-emption rights, which give existing shareholders the right to new shares before outside investors are brought in.
A term of the consent is that the NOC waive any pre-emption rights or rights of first refusal which it may have in respect of such acquisition.
The study was conducted by Paul Mynersm chairman of retailer Marks & Spencer, who proposes relaxing rules on pre-emption rights, which give existing shareholders first refusal when a company issues new shares.