In theGovernance Factorschapter, the Official Training Manual (OTM) explicitly explains:

“Pre-emption rightsprotect existing shareholders by giving them the right to maintain their proportional ownership when new shares are issued.”

This ensures minority shareholders can avoid dilution of their holdings when the company raises capital. The OTM further notes that such rights are a “cornerstone of good governancein most developed markets, ensuring equitable treatment of all shareholders.”

In contrast,dual-class share structuresconcentrate power among a select group of owners, whilegeneral mandate resolutionsallow management broad discretion to issue new shares without pre-emption—both increasing governance risk for minority shareholders.

Hence,option Cis the correct and verified choice, as it is directly supported by the governance standards section.

????Reference:2021-Final-Book.pdf, Chapter 5 — Governance Factors (Shareholder Rights and Minority Shareholder Protection section).