Logourl black

Shareholder rights plan

Definition

A defensive tactic used by a corporation’s board of directors to prevent a hostile takeover, in which directors are given the authority, upon a certain percentage of shares being acquired by a single shareholder, to place restrictions on the exercise, transfer, or receipt of shareholder rights, thereby diluting the shareholding power of a party seeking control of the company.

Related Rules [?]


The related rules section is for members only and includes a compilation of all the rules of law in Quimbee's database relating to this key term.

To access the related rules, please start your free trial or log in.