Bylaw Amendment Limitations

Bylaw Amendment Limitations

These provisions limit shareholders' ability to amend the governing documents of the corporation. This might take the form of a supermajority vote requirement for charter or bylaw amendments, total elimination of the ability of shareholders to amend the bylaws, or the ability of directors beyond the provisions of state law to amend the bylaws without shareholder approval.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Bylaw Amendment Limitation

A restriction on the process of amending the bylaws of a publicly-traded company. Examples of bylaw amendment limitations include requirements for a supermajority of shareholders to agree, or a provision rendering certain bylaws unamendable. Bylaw amendment limitations can be part of an anti-takeover measure and are governed by state law. See also: Charter amendment limitations.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved