What is one of the actions that CANNOT help managers defend against a hostile takeover?
A)establishing a poison pill provision
B)granting lucrative golden parachutes to senior managers
C)establishing a super-majority provision in the company's bylaws to raise the percentage of the board of directors that must approve an acquisition from 50% to 75%
D)changing the voting procedures for the board election from a noncumulative to a cumulative one

Question

Quizplus · Accepted Answer

Changing the voting procedures for the board election from a noncumulative to a cumulative one actually makes it easier for minority shareholders to gain representation on the board, potentially facilitating a hostile takeover rather than defending against it.

What Is One of the Actions That CANNOT Help Managers