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Dictionary by pitch.dog
Shares, shareholders & voting · Core

Pre-emption right

Also called: preemptive right, subscription right

ELI5

A right to participate in new share issues before outsiders, subject to law and agreements.

Used in conversation

“Do not describe pre-emption right as agreed until the operative document says so.”

Pitch context

You will see “Pre-emption right” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches shares, shareholders & voting.

Why it matters: In shares, shareholders & voting, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

  • Pro rata rightBoth can preserve ownership, but the exact trigger, holder and legal source differ by financing documents and jurisdiction.
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Sources & evidence · 8

Direct term-level sources and supporting source families.