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

The firm has used its corporate charter to require a supermajority vote for mergers, which is a common defensive tactic to make hostile takeovers more difficult.

A ﬁRm Votes to Require Any Proposed Merger Be Approved