To Defend Against a Takeover Attempt, a Company Can Promise

question 52

True/False

To defend against a takeover attempt, a company can promise to give its sharehold?ers the right to buy additional shares at low prices.

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Definitions:

Model Business Corporation Act

A model set of laws prepared by legal experts to guide the states in the development of their corporation statutes.

UCC

Known as the Uniform Commercial Code, this significant body of law sets the standards for commercial transactions throughout the United States.

Uniform

Consistently the same in character or degree; in legal contexts, it often refers to laws that are the same across all jurisdictions within a certain area.

Preincorporation Contract

Agreements entered into on behalf of a corporation not yet formally established, often by its founders or promoters.