When a UK company issues new shares, it is obliged by law to give existing shareholders the opportunity to purchase the new shares on a pro rata basis to their existing shareholding in the company. This right is usually implemented by means of a rights issue. Pre-emption rights may be disapplied where a shareholders' resolution to that effect has been passed. Dresdner Kleinwort Wasserstein financial glossary
* * *
pre-emption rights UK US noun [plural] (also pre-emptive rights)
► FINANCE, LAW the rights of shareholders to buy new shares in the same company when they become available, before others are allowed to buy them: »
The broadcaster is keen to exercise its pre-emption rights to shares being sold in the TV station.
Financial and business terms. 2012.