Connecticut Stockholders' Rights Plan of Datascope Corp.

• Category: Corporations - Public - ReIncorporation
• State: Multi-State
• Control #: US-CC-8-162B
• Format: Word; Rich Text

Description

This sample form, a detailed Stockholders' Rights Plan document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats. The Connecticut Stockholders' Rights Plan of Data scope Corp. is a legal mechanism that aims to protect the interests and rights of stockholders in the company. This plan, commonly known as a "poison pill" strategy, is designed to deter hostile takeover attempts by potential acquirers who may not have the best interests of the stockholders at heart. Under this plan, Data scope Corp. grants its existing stockholders a special type of stock purchase right known as a "right." The primary purpose of these rights is to make it economically unattractive for any party to acquire a significant stake in Data scope Corp. without the approval of the company's board of directors. The key provisions of the Connecticut Stockholders' Rights Plan include: 1. Triggering Event: The plan is usually activated when a hostile takeover bid is launched, or when an individual or entity acquires a certain percentage (often 10% or more) of the company's outstanding shares. Once triggered, the rights are distributed to all existing stockholders, providing them with the opportunity to purchase additional shares at a significant discount. 2. Rights Exercise Price: The exercise price of the rights is set at a predetermined level and is typically subject to adjustment in certain situations such as stock splits or dividends. The discount offered to stockholders encourages them to exercise their rights and potentially dilute the shareholding of the hostile acquirer. 3. Duration and Redemption: The rights typically remain in effect for a specified period, often around one year. After this period, the rights expire unless the board of directors decides to extend them. The plan also allows the board to redeem the rights at a certain price, effectively terminating the plan's applicability. 4. Exemptions: The plan may include certain exemptions that are aimed at protecting the interests of stockholders. For example, if a person or entity already owns a significant stake in the company before the plan is implemented, they may be exempt from dilution caused by the rights' distribution. It is important to note that there may be variations of the Connecticut Stockholders' Rights Plan based on the specific requirements and circumstances of Data scope Corp. Different types of plans may include modifications to the triggering events, duration, or redemption provisions to suit the company's unique needs. These modifications are typically disclosed in the plan's documentation and regulatory filings. Overall, the Connecticut Stockholders' Rights Plan of Data scope Corp. acts as a defensive strategy by allowing existing stockholders to protect their ownership interests in the company and ensure that any potential takeover attempt is conducted in a way that is beneficial to all stockholders.

The Connecticut Stockholders' Rights Plan of Data scope Corp. is a legal mechanism that aims to protect the interests and rights of stockholders in the company. This plan, commonly known as a "poison pill" strategy, is designed to deter hostile takeover attempts by potential acquirers who may not have the best interests of the stockholders at heart. Under this plan, Data scope Corp. grants its existing stockholders a special type of stock purchase right known as a "right." The primary purpose of these rights is to make it economically unattractive for any party to acquire a significant stake in Data scope Corp. without the approval of the company's board of directors. The key provisions of the Connecticut Stockholders' Rights Plan include: 1. Triggering Event: The plan is usually activated when a hostile takeover bid is launched, or when an individual or entity acquires a certain percentage (often 10% or more) of the company's outstanding shares. Once triggered, the rights are distributed to all existing stockholders, providing them with the opportunity to purchase additional shares at a significant discount. 2. Rights Exercise Price: The exercise price of the rights is set at a predetermined level and is typically subject to adjustment in certain situations such as stock splits or dividends. The discount offered to stockholders encourages them to exercise their rights and potentially dilute the shareholding of the hostile acquirer. 3. Duration and Redemption: The rights typically remain in effect for a specified period, often around one year. After this period, the rights expire unless the board of directors decides to extend them. The plan also allows the board to redeem the rights at a certain price, effectively terminating the plan's applicability. 4. Exemptions: The plan may include certain exemptions that are aimed at protecting the interests of stockholders. For example, if a person or entity already owns a significant stake in the company before the plan is implemented, they may be exempt from dilution caused by the rights' distribution. It is important to note that there may be variations of the Connecticut Stockholders' Rights Plan based on the specific requirements and circumstances of Data scope Corp. Different types of plans may include modifications to the triggering events, duration, or redemption provisions to suit the company's unique needs. These modifications are typically disclosed in the plan's documentation and regulatory filings. Overall, the Connecticut Stockholders' Rights Plan of Data scope Corp. acts as a defensive strategy by allowing existing stockholders to protect their ownership interests in the company and ensure that any potential takeover attempt is conducted in a way that is beneficial to all stockholders.