preemptive right

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Related to Pre-Emptive Rights: Right of first refusal

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.

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References in periodicals archive ?

Telenor said the guarantees given by the other parties in court pledging to its pre-emptive rights should Telenor win arbitration were "the next best thing" to an injunction.

English court rejects Telenor's injunction request

BHP Billiton, which also has a 25% stake in Bajo de la Alumbrera, has a pre-emptive right to purchase Rio Tinto's 25% interest, should it care to do so.

Wheaton River Eyes Two Rio Tinto Gold Operations

Before the pre-emptive rights exercise, Campbell had announced that Arnott's Limited had entered into a sale agreement with Goodman Fielder to purchase its PNG operations.

Campbell Completes Sale of Arnott's Papua New Guinea Operations

Reportedly, on 6 September 2017, Vestjysk Bank had announced an offering of up to 744,973,396 new shares of a nominal value of DKK1 with pre-emptive rights for the bank's existing shareholders at a price of DKK1 per share of nominally DKK1.

Vestjysk Bank reports on results of offer of shares with pre-emption rights

The lender will offer a total of 33,092,676 convertible notes which will be swapped for pre-emptive rights owned in a 4-to-9 ratio.

-Italian Banca Etruria issues EUR99.9m convertible notes

Rizal Bank said that the board has also approved the removal of shareholders' pre-emptive rights to subscribe or buy any share.

Rizal Bank board approves hike in authorised capital

The resolution of all the various pre-emptive rights is expected to take up to 90 days.

Westside Corporation (ASX:WCL) Announces Proposed Acquisition of Moura Coal Seamgas Assets

Brazilian airline GOL Linhas Aereas Inteligentes (NYSE: GOL and Bovespa: GOLL4) has filed a registration statement, effective immediately, with the US SEC for the registration of 2,470,794 preferred shares in a pre-emptive rights offering.

GOL files registration statement for offering

It also said BellSouth had six weeks to decide on whether to exercise its pre-emptive rights.

FRANCE TELECOM TO RETAIN 55% OF E-PLUS

The issue may deviate from the shareholders' pre-emptive rights through a non-cash issue, through offsetting or may otherwise be subscribed for in accordance with chapter 13 SS 5, paragraph one, 6, of the Companies Act.

Vitrolife: Report from Annual General Meeting

Pre-emptive rights of Siemens shareholders are excluded.

Germany : Siemens accepts exchange offers of investors in 2012 bonds with warrants

Each of these plans includes the right to dispose off shares in the company, share issue without the shareholders' pre-emptive rights and authorisation for the board to decide on acquisition offers.