The shareholders of Tennis Man,Inc.have just approved an amendment to their articles of incorporation that requires 75 percent of all shareholders to approve a merger before it can take place.The amendment is an example of:

Question

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The amendment to the articles of incorporation requiring 75% of shareholders to approve a merger is an example of a valid antitakeover defense. This type of provision makes it more difficult for potential acquirers to gain control of the company, as they would need to convince a large majority of shareholders to approve the merger.

The Shareholders of Tennis Man,Inc