Preemptive Rights: What is the Meaning of Preemptive Rights?
Preemptive Rights means: The right of subscription is a contractual agreement that allows shareholders to purchase additional shares for future issuance of the company's joint stock before the public offering of shares. Shareholders with this clause are usually initial investors or majority shareholders who wish to keep their shares in the company if and when additional shares are offered.
- The first right of denial allows potential investors to retain their voting rights in the company, even when new shares are issued.
- If the value of the new shares is lower than the value of the original shares, the law can also protect potential investors from losses.
- Subscription rights are generally offered only to the first investor and the majority of shareholders, not to all shareholders.
Literal Meanings of Preemptive Rights
Meanings of Preemptive:
Serving or intending to advance something, especially by neutralizing an enemy and preventing an attack.
Sentences of Preemptive
Synonyms of Preemptive
protective, anticipatory, counteractive, deterrent, precautionary, disease-preventing, inhibitory, preventative, pre-emptive, preclusive, preventive
Meanings of Rights:
Restore to normal or correct condition.
What is morally correct, fair or honorable?
The moral or legal right to do or be done.
Right, direction or direction.
A group or party that supports conservative or reactionary views.
Morally good, justified or acceptable.
Satisfactory, healthy or in normal condition or condition.
When this person or thing faces north, about it, towards the human body or object, or towards the east.
Fully complete (used for emphasis)
Prefer conservative or reactionary ideas.
Used to indicate approval or to confirm acceptance of a statement or order.
In wide or full scope or degree (used for emphasis)
Sentences of Rights
We straighten the inverted canoe
Large reductions in defense spending are needed for economic recovery
He does not understand the difference between right and wrong
He has a right to be angry
Take the first right
Right to vote
Hopefully we will do the right thing
This sausage has no smell
Are you politically right, left or center?
Off track car
Synonyms of Rights
put right, agreed, out-and-out, fighting fit, sheer, prerogative, completely, veritable, turn back over, without error, truth, equity, precisely, unalloyed, utterly, all right, well, integrity, rectitude, precise, fine, advantage, turn the right way up again