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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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Q: Can a shareholder sue his or her corporation to enforce preemptive rights?
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What is preemptive rights?

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


What is a pre emption clause?

Apreemptive right or preemption clause is that acurrent shareholder can maintain their fractional ownership of a company by buying a proportional number of shares of any future issue of common stock. Most states consider preemptive rights/clause valid only if made explicit in a corporation's charter. also called subscription privilege or subscription right.


What is a pre-emption clause?

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What rights do neutral countries have during wartime?

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Which stock pays dividends and holders have voting rights?

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Do holders of common stock have any rights in a corporation?

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How do you enforce visitation rights if you surrenderd your parental rights?

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What type of business is recognized by a state and is given certain rights?

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