Asked by Jillian Peace on Jun 30, 2024
Verified
Some publicly held corporations have used supermajority shareholder voting requirements to defend against hostile takeover bids.
Supermajority Shareholder Voting
A voting requirement that exceeds the threshold of a simple majority, often used for significant decisions in a corporation.
Hostile Takeover
An attempt by a company or individual to acquire another company against the wishes of the target company's management and board of directors.
- Discern the impact of business operations on the entitlements of equity holders, notably in derivative actions and remuneration of executives.
- Acquire knowledge on the workings of voting trusts, the nature of shareholder agreements, and the constraints on transferring shares.
Verified Answer
CC
Cheyanne ChurchJul 07, 2024
Final Answer :
True
Explanation :
Supermajority shareholder voting requirements increase the percentage of votes required to approve certain actions, such as mergers or acquisitions, making it more difficult for hostile takeovers to succeed without the support of a larger portion of shareholders.
Learning Objectives
- Discern the impact of business operations on the entitlements of equity holders, notably in derivative actions and remuneration of executives.
- Acquire knowledge on the workings of voting trusts, the nature of shareholder agreements, and the constraints on transferring shares.
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