Where pre-emptive rights exist, existing shareholders must be offered their proportionate share of any new allotment of shares before the shares are offered to anyone else.

Question

Quizplus · Accepted Answer

Pre-emptive rights allow existing shareholders the right to buy new shares in proportion to their current holdings before the company offers them to the public or new investors, ensuring they can maintain their percentage of ownership.

Where Pre-Emptive Rights Exist, Existing Shareholders Must Be Offered Their