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  3. Law: Contract(s)

Derecho de Asuncion Adicional

English translation: additional pre-emptive right

15:34 Jan 23, 2020
Spanish to English translations [PRO]
Law/Patents - Law: Contract(s)
Spanish term or phrase: Derecho de Asuncion Adicional
Se trata de un incremento en el capital social de una compania, en una nueva ronda de financiamiento. He leido en otras oportunidades sobre el Derecho de Asuncion Preferente, pero no el de Asuncion Adicional. Necesito traducirlo al ingles.

Aqui un extracto del texto:

"el derecho de asunción adicional de la presente cláusula abarca el total de derecho de asunción preferente de los Socios Inversores, incluyendo el propio derecho de asunción legal como socio de la Sociedad."
Gwendoline Cordova
Spain
Local time: 15:39
English translation:additional pre-emptive right
Explanation:
The pre-emptive right entitles shareholders to subscribe for new stock in the same proportion as their existing interest in the company's equity, so as to avoid dilution. However, where one or more shareholders decided not to exercise that right in a rights issue, then there are spare shares that have not been subscribed. I understand this "derecho … adicional" as meaning that the other shareholders are entitled to subscribe for those remaining shares. So it's their second bite at the cherry, hence the "adicional"
Selected response from:

John Rynne
Local time: 15:39
Grading comment
Muchas gracias
4 KudoZ points were awarded for this answer



Summary of answers provided
4additional pre-emptive right
John Rynne
3Right of Additional /Rights /Take-Up ('Subscription')
Adrian MM.


  

Answers


20 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
additional pre-emptive right


Explanation:
The pre-emptive right entitles shareholders to subscribe for new stock in the same proportion as their existing interest in the company's equity, so as to avoid dilution. However, where one or more shareholders decided not to exercise that right in a rights issue, then there are spare shares that have not been subscribed. I understand this "derecho … adicional" as meaning that the other shareholders are entitled to subscribe for those remaining shares. So it's their second bite at the cherry, hence the "adicional"


    https://www.boe.es/borme/dias/2008/02/18/pdfs/R05023-05023.pdf
John Rynne
Local time: 15:39
Works in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 208
Grading comment
Muchas gracias
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1 hr   confidence: Answerer confidence 3/5Answerer confidence 3/5
Right of Additional /Rights /Take-Up ('Subscription')


Explanation:
.... de la presente cláusula abarca el total de derecho de asunción preferente: in this Clause covers the entire pre-emptive right...

The context has echoes of a 'rights vs. bonus (free-issue), scrip or capitalis/zation issue' on a share capital increase - I studied only the latter on my ENG co. law course many years ago.

Subscription may also work, but 'adoption' unusually doesn't in this context.

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Note added at 6 days (2020-01-30 14:21:10 GMT) Post-grading
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https://eng.proz.com/kudoz/english-to-spanish/finance-genera...

Example sentence(s):
  • What is Right Issue? These are the shares issued by the company with the purpose of increasing the subscribed share capital of the company through an additional issue.
  • Also, one must not *take up the rights* if the share price has fallen below the subscription price as it may be cheaper to buy the shares in the open market.

    Reference: http://www.proz.com/kudoz/spanish-to-english/law-general/309...
    Reference: http://www.wallstreetmojo.com/right-issue-vs-bonus-issue/
Adrian MM.
Austria
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 278

Peer comments on this answer (and responses from the answerer)
neutral  John Rynne: Not sure I understand your answer(s). Right of additional what?
15 hrs
  -> I think it's a take-up in a rights issue - the mechanics of which that seems to have everyone stumped. www.fool.co.uk/investing-basics/how-the-stock-market-works/...
neutral  AllegroTrans: I find your answer jumbled
20 hrs
  -> I think it's a take-up in a rights issue - the mechanics of which that seems to have everyone stumped. www.fool.co.uk/investing-basics/how-the-stock-market-works/...
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