The Preemptive Rights clause defines whether stockholders have a prior right (or right of first refusal) to purchase new shares before they can be offered to any other person or entity. Some states (including Minnesota, Missouri, South Carolina, and Washington) grant preemptive rights automatically, unless the company’s articles of incorporation specifically waive them.
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Daily Clause--Preemptive Rightsposted Jun 18, 2012, 5:02 AM by Kingsley Martin |