What is a right of first offer in terms of pre-emptive rights?

A right of first offer is best understood as the right to negotiate the sale of shares before others. This means that if a current shareholder wishes to sell their shares, they must first offer them to existing shareholders before seeking outside buyers. The intent behind this right is to give existing shareholders the opportunity to maintain their proportional ownership in the company and prevent dilution of their interest.

This type of right is generally included in shareholders' agreements or corporate charters as a way to facilitate a smoother transfer of shares among existing shareholders and maintain the desired ownership structure. By negotiating first with existing shareholders, a seller may also secure a better price or terms based on their established relationship.

The other options do not reflect the nature of a right of first offer accurately. For example, the option about selling before public offerings refers more closely to a different concept entirely, while the right to avoid selling shares or to receive dividends before others pertains to other shareholder rights. Thus, the definition of negotiating the sale of shares prior to offering them to outside parties correctly encapsulates the essence of a right of first offer in the context of pre-emptive rights.