A modification of the corporate charter that requires 80% shareholder approval for a takeover is called a(n):
A)repurchase standstill provision.
B)exclusionary self-tender.
C)supermajority amendment.
D)tender offer.

Question

Quizplus · Accepted Answer

A supermajority amendment is a change to a company's corporate charter that requires a high percentage of shareholder approval, often 80% or more. This provision could be used to prevent a hostile takeover by making it more difficult for a potential acquirer to gain control of the company. The other choices are not related to this concept.

A Modification of the Corporate Charter That Requires 80% Shareholder