Definitions
There is 1 meaning of the phrase
Preemptive Right.
Preemptive Right - as a noun
The right granting to shareholders the first opportunity to buy a new issue of stock; provides protection against dilution of the shareholder's ownership interest
Example Sentences
"Shareholders have a preemptive right to purchase additional shares of stock before they are offered to the public."
"The company's bylaws include a provision granting preemptive rights to existing investors."
"In order to exercise their preemptive rights, shareholders must notify the company within a specified time frame."
"The board of directors decided to waive the preemptive rights of the shareholders for this particular offering."
"As a result of the new agreement, the minority shareholders will gain preemptive rights previously held only by the majority shareholders."
