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What is preemptive rights?

Updated: 11/6/2022
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9y ago

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Preemptive rights are rights afforded to some shareholders by a corporation. Preemptive rights allow the shareholder to purchase additional shares before they go public.

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Can a shareholder sue his or her corporation to enforce preemptive rights?

The corporate charter giving preemptive rights can be enforced in court, if necessary, and a corporation would normally try to avoid having to defend such an action at a delicate time, i.e., while wooing new investors.


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Preemptive right is the right belonging to existing shareholders of a corporation.


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The U.S. launched a preemptive strike against the taliban to prevent terrorism.


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