Charter Amendment Limitations

Charter 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.

Charter Amendment Limitation

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