pre-emptive rights

pre-emptive rights
USA
The right of a company's stockholders to have the first chance to purchase shares in a company's future stock issuances. These rights are designed to protect stockholders against dilution of their holdings in the company. members of a limited liability company (LLC) may also be granted pre-emptive rights in an LLC's future issuances of LLC interests.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • Pre-emptive Rights —    The right of ordinary or common shareholders to maintain their relative ownership of a company by buying a proportional number of shares of any future issue of shares. This means that their interests in the company will not be diluted by new… …   Financial and business terms

  • pre-emption rights — Where a company proposes to issue new shares, existing shareholders may have the right to be offered a pro rata part of the new shares before they are offered to a new shareholder. The rights are contained either in the Articles of Association or …   Law dictionary

  • pre-emptive rights of stockholders — See rights …   Ballentine's law dictionary

  • pre-emption rights — When a UK company issues new shares, it is obliged by law to give existing shareholders the opportunity to purchase the new shares on a pro rata basis to their existing shareholding in the company. This right is usually implemented by means of a… …   Financial and business terms

  • pre-emp|tive — pre|emp|tive or pre emp|tive «pree EHMP tihv», adjective. 1. of or having to do with preemption: »preemptive purchase of land. 2. initiated before other launched beforehand: »a preemptive war. The preemptive strike…would be a last minute… …   Useful english dictionary

  • pre-emp´tive|ly — pre|emp|tive or pre emp|tive «pree EHMP tihv», adjective. 1. of or having to do with preemption: »preemptive purchase of land. 2. initiated before other launched beforehand: »a preemptive war. The preemptive strike…would be a last minute… …   Useful english dictionary

  • pre|emp´tive|ly — pre|emp|tive or pre emp|tive «pree EHMP tihv», adjective. 1. of or having to do with preemption: »preemptive purchase of land. 2. initiated before other launched beforehand: »a preemptive war. The preemptive strike…would be a last minute… …   Useful english dictionary

  • pre|emp|tive — or pre emp|tive «pree EHMP tihv», adjective. 1. of or having to do with preemption: »preemptive purchase of land. 2. initiated before other launched beforehand: »a preemptive war. The preemptive strike…would be a last minute desperate attempt to… …   Useful english dictionary

  • rights of first offer — USA This requires an equity holder in a company (such as a stockholder or a member) to offer to sell its equity to the other holders before offering to sell to third parties. If the other holders do not buy such offered equity, the selling holder …   Law dictionary

  • rights issue — noun an offering of common stock to existing shareholders who hold subscription rights or pre emptive rights that entitle them to buy newly issued shares at a discount from the price at which they will be offered to the public later the… …   Useful english dictionary

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