Which of the following best describes pre-emption rights?

Pre-emption rights refer specifically to the entitlement that existing shareholders have to purchase additional shares in a company before those shares are offered to other potential buyers. This provision is crucial as it allows current shareholders to maintain their proportional ownership in the company and avoid dilution of their equity stake when new shares are issued.

These rights are often established in a company's articles of association or bylaws and serve to protect existing investors by giving them the chance to buy newly issued shares at the same price as new investors. This is particularly important during capital raises or new financing rounds, as it ensures that long-term shareholders are not disadvantaged by the introduction of more shares into the market.

The other options do not accurately describe pre-emption rights, as they pertain to different aspects of share ownership and transfer. The focus of pre-emption rights on the purchase of additional shares is what sets it apart and defines its importance in corporate governance and shareholder rights.