preemptive right

(redirected from Preemptive Rights)
Also found in: Thesaurus, Legal, Financial.
Related to Preemptive Rights: Right of first refusal, Drag Along Rights

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 ?
Contract notice: Marketing and sale in the housing unit (with application of preemptive rights and the protection of occupants)
Strategic Intent - The release highlighted that Volluto has agreed for the equity investment $90 million in order to exercise its preemptive rights to own c.
The club lost an attempt to disapply preemptive rights for the second year running.
Meanwhile, Vedomosti reported this morning (4 June) that according to a source in AAR, preemptive rights are included in the agreement, while a source at BP denied that such a clause exists.
GOL Linhas Aereas Inteligentes SA (NYSE: GOL) (BM&FBOVESPA: GOLL4), a low-cost and low-fare airline in Latin America, informed its shareholders and the market, on Thursday that the period for exercise of preemptive rights upon the subscription of shares to be issued in connection with the capital increase of the company ended on 26 January 2012.
6 million shares, through an exercise of preemptive rights.
Nevertheless, the companies said all AmBev shareholders have preemptive rights in the subscription of the capital increase resulting.
a) issue in one or more installments convertible bonds and/or bonds with warrants attached in an amount that shall not exceed 150 million euros, with authority to suspend preemptive rights when the offering is reserved for subscription by professional Italian investors and/or foreign institutional investors, for a maximum period of five years from the date of the resolution;
Like preemptive rights, such provisions typically provide a means for a shareholder to maintain his/her ownership percentage.
Payment was required before the land was set for public auction, and transfers or sales of preemptive rights were strictly forbidden.
Its earlier decision in Bruken(56) (in which the court had carved out an exception from the statutory Rule for preemptive rights or rights of first refusal arising in commercial and governmental transactions)(57) did not suggest the propriety of doing so for commercial options inasmuch as preemptive rights only marginally affected transferability and in fact "actually encouraged the use and development of the land, outweighing any minor impediment to alienability.
T" prior to the completion of the preemptive rights offering described in the final prospectus, and "CNCO" following the completion of such preemptive rights offering.