preemptive right

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Related to Pre-Emptive Right: Subscription Rights

Preemptive right

Common stockholders' right to anything of value distributed by thecompany.

Preemptive Right

In stock, the ability of a shareholder to maintain the same percentage of ownership in a company should the company issue more stock by subscribing to a proportional number of shares at or below the market price. This protects the investor from devaluation of his/her shares if the company decides to hold a round of financing. The purchase of this proportional number of shares usually takes place before the new issue is offered to the secondary market, and must be exercised before a certain date (known as the expiration date) if the shareholder is to maintain the same percentage of ownership. It is also called a subscription right. See also: Anti-dilution provision.

preemptive right

A stockholder's right to keep a constant percentage of a firm's outstanding stock by being given the first chance to purchase shares in a new stock issue in proportion to the percentage of outstanding shares already held. Not all firms provide the preemptive right, which is more important to stockholders owning a significant part of a company. Also called subscription privilege. Compare privileged subscription. See also special subscription account.
References in periodicals archive ?
Any exercise by Country Hill of its pre-emptive right to subscribe for the Country Hill Pre- emptive Shares in connection with the issue of the New Share and any Datang Further Subscription will be at a price equivalent to the Subscription Price and conditional on the obtaining of the approval of the independent Shareholders.
Pursuant to the Datang Subscription Agreement, Datang is deemed to have elected not to exercise its pre-emptive right with respect to the Datang Pre-emptive Securities if it does not respond to the final notice within ten (10) business days following the date of the final notice.
provisions of the Joint Operating Agreement and no pre-emptive right arises in
The Company is currently contemplating (i) a top-up placing arrangement which would involve the issue of new Shares, and/or (ii) the issue of Bonds, and has been informed by each of Datang and Country Hill in a non-legally binding letter of intent that it was committed to exercising its respective pre-emptive right to subscribe for the Shares and/or Bonds, up to the amount it is entitled to under the Datang Subscription Agreement (in the case of Datang) or the Country Hill Subscription Agreement for a total consideration of up to US$25,000,000 (in the case of Country Hill), based on terms and conditions that are substantially the same as the offers to international investors.
Pursuant to the Datang Subscription Agreement, Datang is deemed to have elected not to exercise the pre-emptive right with respect to the Datang Pre-emptive Bonds if it does not respond to the final notice within ten (10) business days following the date of the final notice.
50 per share, authorized for issuance by up to 30 million shares (equivalent to nominal value DKK 225,000,000), without any pre-emptive rights for the Company's existing stockholders.
3 of the 16th Extraordinary General Meeting of the Bank dated 27 October 2008 on issuing bonds with the pre-emptive right to take up shares of BRE Bank SA, and on the conditional increase of the share capital through issue of shares without the subscription right of the existing shareholders to enable persons take part in the incentive programme to adopt shares of BRE Bank SA to apply for admission of the shares to trading in the regulated market and on dematerialisation of the shares.
TSX:IVN)(NYSE:IVN) ("Ivanhoe"), which exercised in full its pre-emptive right under its October 2004 Equity Participation and Earn-in Agreement with Entree.
FQML also holds a contractual pre-emptive right to maintain its percentage holdings in certain future transactions.
Furthermore, Barrick has a pre-emptive right that gives it the opportunity to maintain its proportionate interest in Diamondex in the event of certain future offerings of common shares or securities convertible into or exchangeable for common shares, subject to maintaining a minimum shareholding in Diamondex.
Pursuant to the terms of the Bursa letter agreement between Empire and FQML announced on August 20, 2012, Empire is deemed to have granted a pre-emptive right to FQML whereby it may elect to participate in future equity offerings of Shares in order to maintain the lower of: (i) a 19.
In addition, Ivanhoe has advised that it will exercise its pre-emptive right to participate in the $2.