Section 2-205 - Preemptive rights.
§ 2-205. Preemptive rights.
(a) Corporations incorporated on or after October 1, 1995.- For a corporation incorporated on or after October 1, 1995, unless the charter expressly grants such rights to the stockholder, a stockholder does not have any preemptive right to subscribe to:
(1) Any additional issue of stock; or
(2) Any security convertible into an additional issue of stock.
(b) Corporations incorporated before October 1, 1995.- For a corporation incorporated before October 1, 1995, a stockholder shall have preemptive rights as and to the extent in existence before October 1, 1995, unless and until expressly changed or terminated by charter amendment.
(c) Waiver.-
(1) A stockholder to whom a preemptive right has been granted may waive the preemptive right.
(2) A written waiver of a preemptive right is irrevocable even though it is not supported by consideration.
[An. Code 1957, art. 23, § 30; 1975, ch. 311, § 2; 1995, ch. 449; 2008, ch. 292.]