A firm votes to require any proposed merger be approved by a supermajority of the shareholders. The firm has _________________ as a defensive tactic.
A) Used its corporate charter.
B) Relied on repurchase and/or standstill agreements.
C) Utilized exclusionary self-tender offers.
D) Instituted a poison pill.
E) Created a flip-over provision.

Question

Quizplus · Accepted Answer

Requiring a supermajority for merger approval is a change to the corporate governance rules, typically involving an amendment to the corporate charter. This makes it harder for a takeover to succeed without broad shareholder support.

A Firm Votes to Require Any Proposed Merger Be Approved