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    Shareholders’ Pre-Emptive Rights

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    Author
    Frey, Alexander
    
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    URI
    http://hdl.handle.net/20.500.13051/3320
    Abstract
    When a corporation, acting through its board of directors, proposes to increase the number of its shares then outstanding, existing shareholders have a variety of rights with respect thereto. For instance, a shareholder has a right that statutory provisions be complied with in the matter of the creation of additional shares; he has a right that there be no "overissue" of shares; under some circumstances, he has a right that no new shares be created for less than their reasonable sale value; and under other circumstances, he has a right to have offered to him (to "subscribe" for) a proportion of the proposed shares before such opportunity is offered to others. This article is concerned exclusively with an analysis of this last-mentioned right. Herein this right is designated as a shareholder's pre-emptive right.
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