News & Analysis as of

Shareholder Rights Corporate Governance Poison Pill

Carey Olsen

Bermuda Court confirms personal right of action of company directors to end wrongful exclusion

Carey Olsen on

In two notable recent judgments, the Bermuda Supreme Court ruled that a director of a Bermuda company was entitled to an interim injunction prohibiting the company and its other directors from improperly excluding him from...more

Skadden, Arps, Slate, Meagher & Flom LLP

Court Upholds Legality of Poison Pills for Closed-End Funds but Limits Successive Plans

On March 28, 2025, the U.S. District Court for the Southern District of New York (SDNY) held that it was legal under the Investment Company Act of 1940 (1940 Act) for a closed-end fund to use a shareholder rights plan...more

Skadden, Arps, Slate, Meagher & Flom LLP

Delaware Court Enjoins an ‘Extreme’ Stockholder Rights Plan

On February 26, 2021, Vice Chancellor Kathaleen S. McCormick of the Delaware Court of Chancery permanently enjoined a stockholder rights plan — or so-called “poison pill” — with a 5% trigger that The Williams Companies, Inc....more

Latham & Watkins LLP

Considerations for REITs in Adopting a Poison Pill in Response to the COVID-19 Crisis

Latham & Watkins LLP on

REIT management and boards of directors should review their defensive profile and consider whether to prepare a rights plan. Key Points: ..Unprecedented market volatility and investor uncertainty due to the coronavirus...more

Pillsbury Winthrop Shaw Pittman LLP

Protecting Shareholder Rights During the COVID 19 Pandemic

Boards may want to consider adopting or placing “on the shelf” a shareholder rights plan (or “poison pill”) to address the recent collapse in equity values and resulting vulnerability. Because of the current unprecedented...more

Fenwick & West LLP

Considerations in Adopting Poison Pills in the COVID-19 Environment

Fenwick & West LLP on

Market volatility arising from the COVID-19 pandemic may lead to increased hostile takeover activity and shareholder activism as some companies experience market valuations that they believe are not reflective of their...more

WilmerHale

COVID-19: Revisiting Shareholder Rights Plans

WilmerHale on

The turmoil in US equity markets created by the COVID-19 pandemic has resulted in many companies facing depressed stock prices, leaving them vulnerable to unsolicited acquisition proposals or activist activity, which has led...more

Latham & Watkins LLP

Proactively Adopting a Poison Pill in Response to the COVID-19 Crisis

Latham & Watkins LLP on

Tailored considerations for boards of directors and management in the current environment. Key Points: ..Hostile takeover activity and stockholder activism often correspond with or follow periods of extreme market...more

Latham & Watkins LLP

The Resilient Rights Plan: Recent Poison Pill Developments and Trends

Latham & Watkins LLP on

Shareholder rights plans were developed more than 30 years ago to fend off opportunistic hostile offers and other abusive takeover transactions. Rights plans deter unauthorized stock accumulations by imposing substantial...more

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