preemptive right

preemptive right. A shareholder’s privilege to purchase newly issued stock — before the shares are offered to the public — in an amount proportionate to the shareholder’s current holdings in order to prevent dilution of the shareholder’s ownership interest. • This right must be exercised within a fixed period, usu. 30 to 60 days. — Also termed subscription privilege. See SUBSCRIPTION RIGHT. Cf. rights offering under OFFERING. [Cases: Corporations 158. C.J.S. Corporations §§ 133–137.]

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词条贡献者

双语律师李明，国际知名法学院法律专业，擅长翻译各类与政府监管相关的法律文件。