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Preemptive Right
(redirected from Pre-emption right)

   Also found in: Dictionary/thesaurus, Financial, Wikipedia 0.01 sec.

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)



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A term of the consent is that the NOC waive any pre-emption rights or rights of first refusal which it may have in respect of such acquisition.
One top-10 investor in the bank said shareholders also had concerns about the scale of dilution, the costs and the absence of pre-emption rights under Barclays' fundraising plans.
Centrica said in a statement that it had exercised its pre-emption right over the 25.
 
 
 
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