MLchartDataset catalogue

Preemptive right

Term · Law · MLC-T-LAW-003840

A contractual right granting existing shareholders the first opportunity to purchase new shares issued by a corporation, in proportion to their current ownership. This right protects shareholders from dilution of their ownership percentage and voting power. It is often stipulated in a company's articles of incorporation or bylaws.

Table 1. Record
IdentifierMLC-T-LAW-003840
FieldLaw
Record as JSON 
{
  "id": "MLC-T-LAW-003840",
  "term": "Preemptive right",
  "field": "Law",
  "definition": "A contractual right granting existing shareholders the first opportunity to purchase new shares issued by a corporation, in proportion to their current ownership. This right protects shareholders from dilution of their ownership percentage and voting power. It is often stipulated in a company's articles of incorporation or bylaws.",
  "url": "https://mlchart.com/terminology/law/preemptive-right/"
}

Record 3,868 of 5,441 in Law terminology (MLC-0107). Request the full dataset.