If a firm's shareholders are given the preemptive right,this means that they have the right to call for a meeting to vote to replace the management.Without the preemptive right,dissident shareholders would have to seek a change in management through a proxy fight.

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Preemptive right refers to the right of existing shareholders to purchase additional shares before they are offered to the public. It does not give them the right to call for a meeting to replace the management. Shareholders would need to seek a change in management through a proxy fight regardless of whether they have preemptive rights or not.

If a Firm's Shareholders Are Given the Preemptive Right,this Means