Preemptive rights permit a director to veto, or "preempt," any proposal that the shareholders have voted to approve or disapprove.

Question

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Preemptive rights refer to the right of existing shareholders to maintain their proportional ownership in a company by being given the first opportunity to buy new shares issued by the company. It does not give a director the power to veto shareholder proposals.

Preemptive Rights Permit a Director to Veto, or "Preempt," Any