LLC Agreement: Preemptive Rights | Practical Law

LLC Agreement: Preemptive Rights | Practical Law

A standard clause in many LLC agreements, preemptive rights give the members the right to buy a pro rata portion (based on their ownership interest) of any future membership interest issuances the company makes. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips.

LLC Agreement: Preemptive Rights

Practical Law Standard Clauses 5-383-8838 (Approx. 15 pages)

LLC Agreement: Preemptive Rights

by Practical Law Corporate & Securities
MaintainedUSA (National/Federal)
A standard clause in many LLC agreements, preemptive rights give the members the right to buy a pro rata portion (based on their ownership interest) of any future membership interest issuances the company makes. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips.