Dead Hand Poison Pill

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dead hand poison pill

A special type of poison pill antitakeover defense in which only ousted directors can rescind the poison pill. Poison pill plans are put in place in order to make a hostile takeover prohibitively expensive by issuing a huge number of new shares.

A provision in some antitakeover measures stipulating that only persons who were members of the board of directors at the time the antitakeover measure was put into place have the power to rescind the antitakeover measure. More specifically, it may refer to the right of the board of directors to dilute the stock holdings of the person or institution taking over by issuing more stocks and giving them to themselves. The intent is to make the hostile takeover prohibitively expensive for the party taking over. Dead hand poison pills are controversial and have been challenged in some jurisdictions.

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DDU
DE
de facto
de minimis PUD
de minimis settlement
De-Merger
Dead Cat Bounce
Dead Hand Poison Pill
dead load
dead man's statute
Deadbeat
Deal Flow
Deal stock
dealer
dealer bank

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