Supermajority amendment
Topic: Finance
From HandWiki - Reading time: 2 min
Super-majority amendment is a defensive tactic requiring that a substantial majority, usually 67% and sometimes as much as 90%, of the voting interest of outstanding capital stock to approve a merger. This amendment makes a hostile takeover much more difficult to perform. In most existing cases, however, the supermajority provisions have a board-out clause that provides the board with the power to determine when and if the supermajority provisions will be in effect. Pure supermajority provisions would seriously limit management's flexibility in takeover negotiations.
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Licensed under CC BY-SA 3.0 | Source: https://handwiki.org/wiki/Finance:Supermajority_amendment13 views | Status: cached on July 28 2024 04:03:40↧ Download this article as ZWI file
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