staggered terms

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Staggered Terms

An arrangement whereby only a certain number of members of a board of directors are elected in a given year. For example, a board of directors may have 10 members serving five year, staggered terms where two new members are elected each year. In addition to giving the board consistency in its membership, staggered terms makes hostile takeovers more difficult because the potential acquirer can replace only so many directors at a time.

staggered terms

Membership terms for a firm's directors that expire in different years. A firm with 12 directors might have 4-year terms with 3 seats up for election each year. Staggered terms make it more difficult for a raider to gain control of a board.
References in periodicals archive ?
Supreme Court's Bar Admissions Committee: One lawyer to serve a two-year staggered term commencing July 1.
Supreme Court's Bar Admission Committee: One lawyer to serve a two-year staggered term commencing July 1.
serving staggered terms of four years each governs the district.
Each Fund's Class II and remaining Class III Trustees, who serve staggered terms, were not up for election and remain in office.
The organization consists of 19 members from various sectors of the community serving three-year staggered terms.
Classified board membership is built on staggered terms, which often can be used as a defensive measure to hold off a potential hostile takeover.
Directors who are serving on a board with staggered terms, even if they have not yet received a request to eliminate the different classes, should be considering the appropriate response.
Those four would continue to serve staggered terms and could only be removed "for cause.
At the annual meeting the shareholders approved proposals which include the classification of the board of directors int three classes with staggered terms.
ARCS Dallas branch helped the borrower, a California real estate investment trust, by structuring the mortgages with staggered terms and flexible collateral conditions.
Gastelum said revising the charter would not infringe on the mayor's powers, since council members would still face term limits and be elected on staggered terms.
Leases with the new owner are on staggered terms through March 2008.