5/24/2021

Pre-emption
Definition of Pre-emption and the
effect of Death of Pre-emptor

Name: Ahmad Ali khan

Roll No: 513

Class: 6th Semester Regular LLB (2018-23)

Subject: Law of Property-2

Submitted To: Ma’am Shamma Hameed

Department of Law
THE UNIVERSITY OF AJ&K
1 Pre-emption By: Ahmad Ali khan

Index
➢ Definitions of Pre-emption

• According to Merriam Webster

• According to Wikipedia
• According to Cambridge Dictionary
• According UK Practical Law, Thomson Reuters
• According to Legal Dictionary by Farlex
• According to Punjab Pre-emption Act 1991

➢ Effect of Death of Pre-emptor

• Death of Pre-emptor

➢ Conclusion

➢ References
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Pre-emption

Definition of pre-emption

According to Merriam Webster:

1.a: The right of purchasing before others especially: one given by the government to the
actual settler upon a tract of public land.
b: The purchase of something under this right.

2: A prior seizure or appropriation: a taking possession before others.

3.a: A doctrine in law according to which federal law supersedes state law when federal law
is in conflict with a state law Even without an express provision for preemption, we have
found that state law must yield to a congressional Act in at least two circumstances.
— Crosby v. National Foreign Trade Council
— called also federal preemption
b: A doctrine in law according to which the legislation of a superior government (such as
a state government) supersedes that of an inferior government (such as a municipal
government) in conflicts of law.

4: A policy of launching a preemptive attack in order to prevent a suspected imminent

attack.

5: The right of a First Refusal or the right of the shareholder to buy shares of newly issued
stock in proportion to existing holdings before a public offering is made in order to prevent
dilution of ownership interest or seizure of majority control by management

According to Wikipedia:

A pre-emption right, right of pre-emption, or first option to buy is a contractual right to acquire
certain property newly coming into existence before it can be offered to any other person or
entity. It comes from the Latin verb emo, emere, emi, emptum, to buy or purchase, plus the
inseparable preposition pre, before. A right to acquire existing property in preference to any
other person is usually referred to as a right of first refusal.

According to Cambridge Dictionary:

The Rights of shareholders to buy new shares in the same company when they become
available, before others are allowed to buy them, is termed as Pre- emption Rights.

According to Thomson Reuters, Practical Law:

Right of Pre-emption is also known as a right of first refusal. This is the right to be offered a
property first, should the owner decide to dispose of it. Such a right may be agreed expressly
between parties, or it may arise under statute.
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A right of pre-emption will usually relate to a freehold sale, but sometimes gives the holder
of the right the opportunity to take a lease of premises when and if the owner decides to let
them.

According to the Legal Dictionary by Farlex:

Preemptive Right

The privilege of a stockholder to maintain a proportionate share of the ownership of a corpora

tion by purchasing a proportionate share of any new stock issues.
In most jurisdictions, an existing stockholder has the right to buy additional shares of a new is
sue to preserve Equity before others have a right to purchase shares of the new issue.
According to The Punjab Pre-emption Act 1991,
“right of pre-emption” means a right to acquire by purchase an immovable property in
preference to other persons by reason of such right. (sec2(c))
Effect of Death of Pre-emptor
According to THE PUNJAB Pre-emption Act 1991, section 16
Death of Pre-emptor: Where a pre-emptor dies after making any of the demands under
section 13, the right of pre-emption shall stand transferred to his legal heirs.
It is clear from the Above law that right of pre-emption shall stand transferred to his legal
heirs where a pre-emptor dies after making any of the demands under section 13.
Conclusion:
Conclusively, I can state that the Right of Pre-emption is the Right of First Refusal or the
privilege of a stockholder to be offered a property first when the owner decides to dispose off
it or an existing stockholder has the right to buy additional shares of a new issue to preserve
Equity before others have a right to purchase shares of the new issue.
In case of Death of Pre-emptor after making any of the demands under section 13, the right of
pre- emption shall stand transferred to legal heirs.
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References
➢ The Punjab Pre-emption Act 1991,
http://punjablaws.gov.pk/laws/381.html

➢ Merriam Webster, Pre-emption / legal Definition

https://www.merriam-webster.com/dictionary/preemption
https://www.merriam-webster.com/legal/preemptive%20right

➢ Wikipedia, Pre-emption right

https://en.wikipedia.org/wiki/Pre-emption_right

➢ UK Practical law by Thomas Reuters, right of pre-emption

https://uk.practicallaw.thomsonreuters.com/8-202-
2746?transitionType=Default&contextData=(sc.Default)&firstPage=true

➢ Cambridge Dictionary, Pre-emption right

https://dictionary.cambridge.org/dictionary/english/pre-emption-rights

➢ Legal Dictionary, the free dictionary by Farlex, Preemptive right

https://legal-dictionary.thefreedictionary.com/Pre-emption+rights