Massachusetts General Laws

Mass. Gen. Laws ch. 156B, § 20 (2026)

Pre-emptive rights

✓ current as of July 2026

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Section 20. No stockholder shall have any pre-emptive right to acquire stock of the corporation except to the extent provided in the articles of organization or in a by-law adopted by and subject to amendment only by the stockholders.

Notes of Decisions

Cited in 1 case, 1975–1975 · leading case: Donahue v. Rodd Electrotype Co. of New England, Inc., 328 N.E.2d 505 (Mass. 1975).

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Donahue v. Rodd Electrotype Co. of New England, Inc., 328 N.E.2d 505 (Mass. 1975). · cites it 2× “" G.L.c. 156B, § 20. We do not here suggest that such preemptive rights are required by the strict fiduciary duty applicable to the stockholders of close corporations.”

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