Creating an employee stock ownership plan to fight a tender offer is illegal under the Smith Act.

Question

Quizplus · Accepted Answer

Creating an employee stock ownership plan to fight a tender offer is not illegal under the Smith Act. The Smith Act is a federal law that prohibits advocating the overthrow of the government or organizing or belonging to any group that advocates for the overthrow of the government. It has nothing to do with employee stock ownership plans.

Creating an Employee Stock Ownership Plan to Fight a Tender