With preemptive rights, shareholders can preempt the decisions of directors and officers with respect to corporate policy.

Name: With preemptive rights, shareholders can preempt the decisions of directors and officers with respect to corporate policy.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

With preemptive rights, shareholders can preempt the decisions of directors and officers with respect to corporate policy.​

Quizplus · Accepted Answer

Preemptive rights allow shareholders the right to purchase additional shares before the company offers them to the public, to maintain their proportional ownership in the company, not to preempt decisions on corporate policy.

With Preemptive Rights, Shareholders Can Preempt the Decisions of Directors