A shareholder's preemptive right allows him to:
A)increase his proportionate voting power.
B)maintain his dissenters' right.
C)increase the value of his shares.
D)maintain his proportionate share of dividends.

Question

Quizplus · Accepted Answer

Corporation law recognizes the importance of giving a shareholder the option of maintaining the value of his/her shares and retaining his/her proportionate interest in the corporation.This is the shareholder's preemptive right,an option to subscribe to a new issuance of shares in proportion to the shareholder's current interest in the corporation.

A Shareholder's Preemptive Right Allows Him To