Discussion
An example of a shark-repellent charter amendment is:
(I) Supermajority
(II) Waiting period
(III) Poison pill
(IV) Staggered board
Answer: D
Correct answer: I, II, III, and IV
All four are shark repellents, adopted in advance to make an unwanted bid harder. A supermajority provision raises the vote required, a waiting period delays the bidder, a poison pill dilutes a hostile stake by issuing shares cheaply to everyone else, and a staggered board means only a third of the directors can be replaced each year, so control takes two annual meetings to win.
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