Definitions for "Pre-emptive rights"
The right of an investor to participate in a financing to the extent necessary to ensure that, if exercised, its percentage ownership of the company's securities will remain the same after the financing as it was before.
These are a feature of partnership investment. Under pre-emptive rights provisions (set out in the Deed of Partnership), should one member wish to sell their share(s), they must first be offered to the other partners and only when these partners have declined to purchase at the seller's nominated price can the investment then be offered to non-partners at this same price.
The right of existing shareholders to buy additional shares in a company through a new issue, before it is offered to the public.