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 ?
This increase is effected without any preemption rights for the existing shareholders of the company or others.
The transaction is subject to approval of the Government of Senegal and co-venturer preemption rights.
The transaction is subject to certain conditions precedent being met, including the preemption rights of the Bengalla joint venture partners.
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.
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.
enables shareholders in pubic joint stock companies to sell their preemption rights (rights issue);
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.
Petitions demanding preemption rights for hardworking "squatters" contributed to the emerging image of the "pioneer" but were actually the work of land speculators angling for political favors.
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.
3) Marie Cornu 'Museum Preemption Rights under French Law' Art Antiquity and Law XI.
But Walker's preemption rights allow him 42 days to match any offer accepted by Landsbanki.
In the event that the GRB exercises its preemption rights in full, Anglo American, under the proposed transaction, would acquire an incremental 30 per cent interest in De Beers, taking its total interest to 75 per cent, and the consideration payable by Anglo American to the CHL Group would be reduced proportionately.