Which one of the following statements is false?
A) Poison pills encourages current owners to purchase more stock in the company.
B) Poison pills discourage potential high takeover bids.
C) Stockholders have to approve the acceptance of poison pill strategies before a corporation can use them.
D) Many institutional investors are opposed to the poison pill

Question

Quizplus · Accepted Answer

Stockholders do not have to approve the acceptance of poison pill strategies before a corporation can use them. Poison pills are usually implemented by the board of directors as part of their fiduciary duty to protect the interests of the company and its shareholders. However, some companies may seek approval from shareholders as a way to avoid any potential legal challenges to the use of the poison pill.

Which One of the Following Statements Is False