preemptive right

preemptive right
preemptive right n
2: the right of a shareholder to buy shares of newly issued stock in proportion to existing holdings before a public offering is made in order to prevent dilution of ownership interest or seizure of majority control by management

Merriam-Webster’s Dictionary of Law. . 1996.

preemptive right
The right of a shareholder in a corporation to have the first opportunity to purchase a new issue of stock of that corporation in proportion to the amount of stock already owned by the shareholder.
Category: Business, LLCs & Corporations → LLCs, Corporations, Partnerships, etc.

Nolo’s Plain-English Law Dictionary. . 2009.


preemptive right
n. The right to the first opportunity to claim land subject to being preempted; the right of existing shareholders in a corporation to have the first opportunity to buy new shares when issued.

Webster's New World Law Dictionary. . 2000.


preemptive right
The privilege of a stockholder to maintain a proportionate share of the ownership of a corporation by purchasing a proportionate share of any new stock issues.

Dictionary from West's Encyclopedia of American Law. 2005.


preemptive right
The privilege of a stockholder to maintain a proportionate share of the ownership of a corporation by purchasing a proportionate share of any new stock issues.

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

preemptive right
n.
   the right of a shareholder in a corporation to have the first opportunity to purchase a new issue of stock of that corporation in proportion to the amount of stock already owned by the shareholder.
   See also: corporation, shareholder, stock

Law dictionary. . 2013.

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  • preemptive right — noun The right of shareholders to maintain a constant percentage of a companys shares by receiving a proportionate fraction of any new shares issued, thus preempting any dilution …   Wiktionary

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  • right — / rīt/ n [Old English riht, from riht righteous] 1 a: qualities (as adherence to duty or obedience to lawful authority) that together constitute the ideal of moral propriety or merit moral approval b: something that is morally just able to… …   Law dictionary

  • right of first refusal — right of first re·fus·al / ri fyü zəl/: the right to have the first opportunity to purchase property upon the owner s decision to sell at the same terms offered by a third party or at predetermined terms – called also preemptive right; Merriam… …   Law dictionary

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