A change in the corporate charter making it more difficult for the firm to be acquired by increasing the percentage of shareholders that must approve a merger offer is called a:
A) Supermajority amendment.
B) Standstill agreement.
C) Greenmail provision.
D) Poison pill amendment.
E) White knight provision.

Question

Quizplus · Accepted Answer

A supermajority amendment is a change in a company's charter that requires a larger-than-normal majority (often 70% to 90%) of shareholders to approve certain actions, such as mergers or acquisitions, making it harder for the firm to be taken over.

A Change in the Corporate Charter Making It More Difficult