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

This is known as a supermajority amendment, as it requires a higher than usual percentage of shareholders to approve of a merger offer, making it more difficult for the firm to be acquired.

A Change in the Corporate Charter Making It More Diﬃcult