Future pre-emptive rights Clause Samples
A future pre-emptive rights clause grants existing shareholders the right to purchase additional shares in the company before those shares are offered to external parties. In practice, this means that if the company issues new shares in the future, current shareholders have the first opportunity to buy them in proportion to their existing holdings. This mechanism helps prevent dilution of existing ownership and ensures that shareholders can maintain their relative stake in the company, thereby protecting their investment and influence.
POPULAR SAMPLE Copied 1 times
Future pre-emptive rights. In the event of an issue of new Shares (irrespective of the class of such Shares) and notwithstanding any contrary provision in the Articles (as the Articles may read from time to time), all Shareholders (including the holders of Preferred Shares and/or any future classes of Preferred Shares) shall (in deviation Of section 2:206a subsection 2 of the Dutch Civil Code) have a first right to subscribe for any newly issued Shares in proportion to their individual shareholdings of Shares in the Company. In the event a Shareholder does not exercise its pre-emptive rights in respect of such newly issued Shares, the other Shareholders shall have pre-emptive rights in respect of those shares in proportion to their individual shareholdings of Shares in the Company. For the purpose of clarification, the Parties observe that in case of an issue of new Shares, the provisions of Article 9 hereof (Anti-Dilution Adjustments) will apply in preference to the provisions of this Article 20 (Future Pre-emptive rights). The Investor is entitled to exercise any pre-emptive rights of any Shareholder that does not exercise its own pre-emptive rights, whereby BioGeneration is entitled to transfer or assign its pre-emptive rights to affiliates, to successor funds and/or to Forbion Capital Partners.