Pre-emptive rights

Rights of the existing shareholders of a corporation to have any shares the directors propose to issue offered first to them, on some basis, usually in proportion to their existing holdings of shares. Such rights may be set out in the articles or in a shareholders’ agreement. Under some other corporate statutes, pre-emptive rights may be set out in an unanimous shareholders’ agreement (e.g. OBCA, s 26). See CBCA, s. 28