preemptive right

Examples of preemptive right in the following topics:

• Purchasing New Shares

  • New shares can be purchased on exchanges and current shareholders will usually have preemptive rights to newly issued shares.
  • Current shareholders may have preemptive rights over new shares offered by the company.
  • In practice, the most common form of preemption right is the right of existing shareholders to acquire new shares issued by a company in a rights issue, a usually but not always public offering.
  • In this context, the pre-emptive right is also called "subscription right" or "subscription privilege. " This is the right, but not the obligation, of existing shareholders to buy the new shares before they are offered to the public.

• Treasury Stock

  • When a corporation has additional authorized shares of stock that are to be issued after the date of original issue, in most states the preemptive right requires offering these additional shares first to existing stockholders on a pro rata basis.
  • However, firms may reissue treasury stock without violating the preemptive right provisions of state laws; that is, treasury stock does not have to be offered to current stockholders on a pro rata basis.

• Control and Preemption

  • Shareholders have the right of preemption, meaning they have the first chance at buying newly issued shares of stock before the general public.
  • These rights may include:
  • The right to nominate directors (although this is very difficult in practice because of minority protections) and propose shareholder resolutions
  • A preemption right, or right of preemption, is a contractual right to acquire certain property coming into existence before it can be offered to any other person or entity.
  • The conditions of preemptive rights will vary from company to company and share type to share type.

• Common Stock

  • Common stock is a form of ownership and equity, different from preferred stock, that still earns rights of ownership for its shareholders.
  • Also, Common stock usually carries the right to vote on certain matters.
  • It must be remembered that Preferred stock generally does not carry voting rights.
  • Some holders of common stock also receive preemptive rights, which enable them to retain their proportional ownership in a company should it issue another stock offering.

• Dividend Preference

  • All of the stockholders enjoy equal rights.
  • Preferred stock is a class of capital stock that carries certain features or rights not carried by common stock.
  • Diluting the common stockholders' control of the corporation, since preferred stockholders usually have no voting rights.
  • Common stock usually carries with it the right to vote on certain matters, such as electing the board of directors.
  • Some holders of common stock also receive preemptive rights, which enable them to retain their proportional ownership in a company should it issue another stock offering.

• Punishment as a Management Tool

  • Shocking a rat for turning left instead of right in a maze is an example of positive punishment; taking away a child's toy after he hits his brother is an example of negative punishment.
  • This can be accomplished either through punishing someone immediately after the undesirable behavior so that they are reluctant to perform the behavior again or through educating people about the punishment preemptively so they are reluctant to perform the behavior at all.
  • Prevention is a much cheaper and easier approach than waiting for something bad to happen, so preemptive education regarding rules and penalties for rule violation is common practice.

• September 11th and the War on Terror

  • A preemptive war is a war that is commenced in an attempt to repel or defeat a perceived offensive or invasion, or to gain a strategic advantage in an impending (allegedly unavoidable) war before that threat materializes.
  • It is a war that preemptively 'breaks the peace.'
  • In the new War on Terror, however, extracting intelligence about upcoming attacks became a top priority that superseded human rights and constitutional concerns.
  • The Bush administration labeled the detainees “unlawful combatants,” in an effort to avoid affording them the rights guaranteed to prisoners of war, such as protection from torture, by international treaties such as the Geneva Conventions.
  • Furthermore, the Justice Department argued that the prisoners were unable to sue for their rights in U.S. courts on the grounds that the constitution did not apply to U.S. territories.

• Dual Licensing Schemes

  • Some projects try to fund themselves by using a dual licensing scheme, in which proprietary derivative works may pay the copyright holder for the right to use the code, but the code still remains free for use by open source projects.
  • Its right to do this is not tied to the GPL or any other open source license; it is simply a power granted by copyright law.
  • Nevertheless, dual licensing is an instance of the copyright holder assigning itself a special right that others in the project do not have, and is thus bound to raise tensions at some point, at least with some volunteers.
  • To what degree this threat preëmptively shapes the company's policies I don't know, but at any rate, MySQL does not seem to be having acceptance problems either in the open source world or beyond.

• The Republican Party

  • In the 21st century, the Republican Party has been defined by social conservatism, a preemptive war foreign policy intended to defeat terrorism and promote global democracy, a more powerful executive branch, supply-side economics, support for gun ownership, and deregulation.
  • Bush suggested the possibility of preemptive war: "I will not wait on events, while dangers gather.

• Episiotomy

  • Some physicians, however, may cut the perineum preemptively, on the grounds that tearing may be more harmful than a precise cut by a scalpel.