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प्रश्न
In the context of right shares, bring out the meaning of pre-emptive right.
लघु उत्तरीय
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उत्तर
The pre-emptive right means that when a company issues new shares (called right shares), it must first offer these shares to its existing shareholders in proportion to their current holdings.
This ensures that existing shareholders get a chance to maintain their percentage of ownership in the company.
It protects shareholders from dilution of their control.
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