etuoikeusosake

Etuoikeusosake, or "preemptive right share" in English, refers to a special right granted to existing shareholders in a company to maintain their proportional ownership when new shares are issued. This right is primarily used in limited liability companies (osakeyhtiöt) and other corporate structures in Finland, where it is regulated by the Finnish Companies Act.

The concept of etuoikeusosake ensures that existing shareholders have the first opportunity to purchase newly issued shares before they are offered to the public or other investors. This helps protect the shareholders' existing interests by preventing dilution of their ownership stakes. The right is typically tied to the issuance of new shares, such as those issued in connection with capital increases, rights offerings, or other equity financing rounds.

When a company decides to issue new shares, it must notify its shareholders about the etuoikeusosake opportunity. Shareholders are then given a specified period to exercise their right by subscribing to the new shares at a predetermined price, often at a slight discount compared to the market price. If a shareholder chooses not to exercise their right, they may lose their proportional ownership in the company.

The purpose of etuoikeusosake is to maintain fairness and transparency in corporate governance, ensuring that existing shareholders are not unfairly disadvantaged by new equity issuances. It also helps align the interests of existing and new shareholders, fostering long-term stability in the company. Failure to respect etuoikeusosake can lead to legal consequences, as it violates the rights of shareholders under Finnish corporate law.