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Simple English definitions for legal terms

Preemptive right

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A quick definition of Preemptive right:

A preemptive right is a special right that existing shareholders in a company have. It means they get to buy new shares of the company before anyone else can. This is to make sure that the current shareholders don't lose value or control of the company. The company's rules, called the charter, usually say how many new shares each shareholder can buy. This used to be a rule that all companies had to follow, but now it's only required if the charter says so.

A more thorough explanation:

A preemptive right is a right given to existing shareholders in a company that allows them to buy newly issued shares before they are offered to anyone else. This right is meant to protect current shareholders from losing value or control of the company. Preemptive rights are usually stated in the company's charter.

For example, if a company decides to issue 100 new shares, and a shareholder owns 10% of the company, they would have the right to buy 10 of the new shares before anyone else can buy them. This ensures that the shareholder's ownership percentage remains the same, and they are not diluted by the new shares.

It's important to note that not all companies offer preemptive rights, and it's up to the company's charter to decide whether or not to include them.

Preemption | preference

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19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
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