A poison pill is a corporate governance device which has the practical effect of giving a corporation's board of directors the final say over any takeover attempt. Many regard poison pills as friendly to boards of directors and contrary to shareholders' interests. This article, however, notes a recently-filed case where this dynamic was reversed, as the shareholders of a target company are litigating in an effort to force their board of directors to adopt defensive measures (including a poison pill) in light of an impending takeover.
- Summary by FizzLaw Team
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In Unusual Move, CVR Investors Seek Poison Pill