THE PREFERENTIAL RIGHT TO SUBSCRIBE AS PROTECTION FOR EXISTING SHAREHOLDERS
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Abstract
The Algerian legal framework has accorded a variety of financial privileges to shareholders of joint-stock companies, one of the most prominent being the preferential subscription right. This right is essential for current shareholders to safeguard their stakes in the company against potential dilution due to the arrival of new investors. It becomes particularly pivotal during capital increases, ensuring that existing shareholders can retain their relative ownership percentages. This safeguard is automatically invoked whenever the company opts to augment its capital, underscoring its significance in maintaining shareholder equity.
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