Explain Why Most Corporations Issue Pre-Emptive Rights on Their New

question 47

Essay

Explain why most corporations issue pre-emptive rights on their new issues of stock when pre-emptive rights are generally not recognized by courts in Canada.

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Definitions:

Recall Notice

A notification issued by a manufacturer to inform consumers of a defect or safety concern with a product and to return, repair, or replace it.

Crisis Management

The process by which an organization deals with a disruptive and unexpected event that threatens to harm the entity or its stakeholders.

Contingency Plan

A strategy or plan developed to address unforeseen events or emergencies to minimize impact and ensure continuity of operations.

Vision

Ability to perceive marketplace needs and what an organization must do to satisfy them.