preemptive right


Also found in: Thesaurus, Legal, Financial, Wikipedia.
Related to preemptive right: classified stock

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 ?
Additionally, transfer of the shares of Japan Vilene requires consent of the other party, and each party has the preemptive right in proportion to its shareholding ratio when the company issues new shares.
The preemptive right lasts till February 26, 2013, and we recommend using it in order to get more liquid shares of RysHydro.
According to the Constitution of Pakistan, the province has the preemptive right to take up to 50 per cent of the gas produced in the province, whereas at present it is drawing only 35 per cent, which is far below its right.
The government of Pakistan can exercise its preemptive right to buy out BP s interests, but we have to see how much are they asking.
Current shareholders will have a preemptive right to subscribe in proportion to their holdings.
Mitsui, which owns 40% of CAEMI's voting shares and is a key player in the Brazilian iron ore market, has the preemptive right to match BHP's reported offer to buy the Brazilian mining company at $322 million.
last year, but was thwarted by ANZ, which owned the other 50% and had the preemptive right to buy News Corp.
2) unanimously concluded that a preemptive right in the form of a right of first refusal in a commercial or governmental transaction is exempt from the Rule against Perpetuities (Rule) as embodied in New York Estates Powers and Trusts Law (EPTL) section 9-1.
These convertible bonds may, with deviation from the shareholders' preemptive right, only be subscribed for by Inhye Kim.
The cut-off date for implementing the preemptive right to purchase shares was on May 17.
Also, the meeting approved the board of directors' resolution to carry out a new share issue with preemptive right for the shareholders of the company.
FTI, the minority shareholder in Kvantel, first acquired EFI's shares in Kvantel through having exercised a preemptive right to acquire such shares.