antidilution clause
Definition
Provision in the articles of association (or bylaws) of a firm that prevents the firm from issuing additional stock (shares) without first giving the current stockholders (shareholders) the option to buy the new shares. The objective of this clause is to give the current stockholders a chance to retain their original percentage of the firm's ownership.
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antidilution clause is in the Corporate, Commercial, & General Law and Investing subjects.
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