Preemptive Rights allow shareholders to maintain their current percentage of equity by requiring that, in the event a company desires to raise additional investment, such company offer shares for purchase by the holders of preemptive rights so that they can maintain their pro rata ownership of the company.
ACCELERATE YOUR STARTUP LAW KNOWLEDGE!
Startup Law doesn’t have to be a confusing maze. The practical knowledge in "Acceleration: What All Entrepreneurs Must Know About Startup Law" will help you make the smart decisions to protect your startup and its future. Available in ebook and hardcover.
Buy the Book on Amazon