preemptive right

(redirected from Preemption 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 ?
The law enables shareholders in public joint stock companies to sell their preemption rights (rights issue) and enables shares in LLCs to be pledged as security to financiers.
However, the Nigerian National Petroleum Corporation ("NNPC") has blocked the closing by wrongfully attempting to exercise preemption rights that are patently expired and were expressly waived.
There were also believed to be question marks over Mr Ashley's move as preemption rights can mean existing shareholders have to be offered right of refusal ahead of an outside investor.
54 billion, but the deal was subject to preemption rights of ONGC and Shell.
OVL- OIL would require approval from the Mozambique and the Indian governments along with regulatory permissions and preemption rights waiver from the existing partners in Rovuma- 1 area for the deal to go through.
Under the terms of the Shareholders' Agreement between Anglo American, CHL (representing the Oppenheimer family interests) and the Botswana Government, the latter had preemption rights in respect of CHL's interest in De Beers, enabling it to increase its interest in De Beers, on a pro rata basis, to up to 25% at a cost of US$1.
But Walker's preemption rights allow him 42 days to match any offer accepted by Landsbanki.