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 ?
By tempering the record the official now posted in Banda Daud Shah-Karak had also deprived one Naushad Khan of preemption right (Haq-e-Shufa) , he maintained.
Some 220 private owners of plots of land in different tourism expansion areas nationwide gave their approval to the preemption right, allowing the use of the land for tourist investment, Mimoun underlined.
The Algerian government said on Friday that OT said it wanted to continue operating in the country, and the government reiterated that it would have the preemption right in any sale.
With BG having expressed its intention to pull out, the government is now trying to negotiate for Kazmunaygaz to buy its stake--despite the consortium members' previously expressed intention to exercise their preemption right.
Eni today revoked the sale and purchase agreement signed on December 18 for the acquisition of Heritage's 50 per cent share in Ugandan Blocks 1 and 3A, on which Tullow Oil has exercised its preemption right," an Eni spokesman said.
The sale, which is subject to approval by the buyer s shareholders and to the Paris City s waiver of its preemption right, should be completed no later than 15 February.
That is why the Group exercise its preemption right following the agreement signed between Wentworth Resources and Cove Energy in February 2012.
475% interest, on the same terms and conditions as agreed with Wentworth and subject to TPDC's preemption right.
Qualifying shareholders will be entitled to one ordinary share preemption right to subscribe for 0.