Preemptive Right

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Related to Pre-Emptive Right: Subscription Rights

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.

In most jurisdictions, an existing stockholder has the right to buy additional shares of a new issue to preserve Equity before others have a right to purchase shares of the new issue.

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: corporation, stock)

References in periodicals archive ?
If Datang fully exercises its pre-emptive right pursuant to the Datang Subscription Agreement, independent Shareholders' and necessary governmental approvals are successfully obtained, the maximum gross proceeds of the potential Datang Further Subscription will be approximately HK$864.
00 per share, pursuant to a pre-emptive right granted by Duluth to Antofagasta pursuant to the January 14, 2010 private placement, which gives Antofagasta the right to participate under certain circumstances in future issuances of common shares of Duluth.
The pre-emptive right is personal to Great Basin Gold and
Any exercise by Datang of its pre-emptive right to subscribe for the Datang Pre-emptive Securities in connection with the issue of the Subscription Shares, the Further Bonds and any Country Hill Further Subscription will be at a price equivalent to the Subscription Price (in the case of the Datang Pre-emptive Shares) or the issue price of the Further Bonds (in the case of the Datang Pre-emptive Bonds) and conditional on the obtaining of the necessary governmental approval and the obtaining of the approval of the independent Shareholders for any such Datang Further Subscription.
exercise its pre-emptive right in accordance with the Joint Operating
Reference is also made to the Company's announcement dated 18 April 2011 in relation to the Country Hill Subscription Agreement, pursuant to which, in case of any issue of new Shares or securities convertible into Shares by the Company, Country Hill has a pre-emptive right to purchase a pro rata portion of such new securities being issued and the Company is required to notify Country Hill of such proposed issue.
SIA had previously hoped to break into the Australian market by purchasing New Corp Ltd`s 50% stake in Ansett Australia, but this plan was thwarted when Air New Zealand exercised its pre-emptive right to block the sale in mid-1999.
1) PROPOSED ISSUE OF US$200 MILLION ZERO COUPON CONVERTIBLE BONDS DUE 2018 (2) PRE-EMPTIVE RIGHT OF DATANG AND (3) PRE-EMPTIVE RIGHT OF COUNTRY HILL
ONGC Videsh Ltd (OVL) has exercised its pre-emptive right to stop a Chinese company from purchasing a stake in the Brazilian oilfields.
The bank said the number of D series shares attributable to one pre-emptive right is 0.
Pursuant to the terms of the subscription, as long as Santa Elina Mines owns at least 10% of the issued and outstanding common shares of Aura Gold, Santa Elina Mines has a pre-emptive right to participate in any and all equity financings on a pro rata basis to its non-diluted share ownership position as at the effective date of any such equity financing.
50 per share, without any pre-emptive right of subscription for existing shareholders and to reserve the same number of ordinary shares for issuance upon exercise thereof, all in compliance with the procedures stated in Article 3K of the Company's Articles of Association.