CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

An example of a shark-repellent charter amendment is:

I. Supermajority.
II. Waiting period.
III. Poison pill.
IV. Staggered board.
A. I, II and III
B. I, III and IV
C. I, II, III and IV
Explanation: The amendments can include: restricted voting rights to new shareholders, requiring super-majority approvals for certain resolutions to be approved by the shareholders, and staggered change of the board of directors.

User Contributed Comments 7

User Comment
krisscfa what is "shark-repellent charter amendment?
NillePet "shark repellent" is just another term for take over defenses that can be taken by the target company. With regards to an amendment of the charter, defensive strategies include all the answer given above.
tim2 Waiting period? What's that about?

I tried googling "takeover waiting period" but it had stuff about anti trust law rather than shark repellent.
Hishy I think it just means that there is a mandatory waiting period before any big decisions are made.

But with the HSR Act, I think there's also a waiting period after announcing the merger when you can't do anything while the FTC and DOJ review your case?
endurance waiting period is not mentioned in the textbook?
Markoskobo You have poison pills as a rights-based pre takeover defence in another question?
dennis7t I have the same question as Markoskobo…
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