Dead Hand Provision
外汇网2021-06-19 13:45:56
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A stipulation on a defense mechanism (or poison pill) used by companies in order to protect against a merger or takeover by another company. The dead hand provision pvents the removal of the poison pill, a strategy used to discourage a hostile takeover, even if shareholders of the target company favor the takeover.
A dead hand provision states that only the original directors who put the provision into place can dismantle the pill, so any new directors are pvented from interfering.
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