Maine 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. Maine Stockholders' Rights Plan of Data scope Corp, commonly known as a "poison pill," is a corporate governance strategy employed by Data scope Corp., a company incorporated in the state of Maine, to protect itself from unwanted takeovers and ensure the rights of its stockholders. This plan is often used to deter hostile or unsolicited acquisition attempts. The Maine Stockholders' Rights Plan grants certain rights, known as "rights certificates," to the company's stockholders. These certificates enable stockholders to purchase additional shares of stock at a discounted price in the event of a triggering event, usually when a significant percentage of the company's shares are acquired. The objective of the plan is to make acquisitions more expensive or less attractive, ultimately dissuading potential acquirers from proceeding with an acquisition without the consent of the company's board of directors. This gives the board time to evaluate the offer and seek alternatives that may be in the best interest of both the company and its stockholders. There are typically two main types of Maine Stockholders' Rights Plans—flip-in and flip-over provisions. The flip-in provision allows existing stockholders, excluding the acquirer, to purchase additional shares at a discount when the triggering event occurs. These additional shares dilute the ownership and make the takeover attempt costlier for the acquirer. On the other hand, the flip-over provision allows stockholders to purchase the shares of the acquiring company at a discounted price in the event of a triggering event. This provision is triggered when the acquiring company merges with or acquires the target company. This enables stockholders to benefit from potential gains in the acquiring company's stock while making the acquisition less appealing to the acquirer. When the Maine Stockholders' Rights Plan is activated, the rights certificates are typically distributed as a dividend to all stockholders, attached to their existing shares. The plan often includes specific provisions on how and when the rights can be exercised and sets a timeframe for expiration. Overall, the Maine Stockholders' Rights Plan of Data scope Corp. acts as a defensive mechanism to safeguard the company and its stockholders against hostile takeover attempts, ensuring that any acquisition or merger is carried out in the best interest of all parties involved.

Maine Stockholders' Rights Plan of Data scope Corp, commonly known as a "poison pill," is a corporate governance strategy employed by Data scope Corp., a company incorporated in the state of Maine, to protect itself from unwanted takeovers and ensure the rights of its stockholders. This plan is often used to deter hostile or unsolicited acquisition attempts. The Maine Stockholders' Rights Plan grants certain rights, known as "rights certificates," to the company's stockholders. These certificates enable stockholders to purchase additional shares of stock at a discounted price in the event of a triggering event, usually when a significant percentage of the company's shares are acquired. The objective of the plan is to make acquisitions more expensive or less attractive, ultimately dissuading potential acquirers from proceeding with an acquisition without the consent of the company's board of directors. This gives the board time to evaluate the offer and seek alternatives that may be in the best interest of both the company and its stockholders. There are typically two main types of Maine Stockholders' Rights Plans—flip-in and flip-over provisions. The flip-in provision allows existing stockholders, excluding the acquirer, to purchase additional shares at a discount when the triggering event occurs. These additional shares dilute the ownership and make the takeover attempt costlier for the acquirer. On the other hand, the flip-over provision allows stockholders to purchase the shares of the acquiring company at a discounted price in the event of a triggering event. This provision is triggered when the acquiring company merges with or acquires the target company. This enables stockholders to benefit from potential gains in the acquiring company's stock while making the acquisition less appealing to the acquirer. When the Maine Stockholders' Rights Plan is activated, the rights certificates are typically distributed as a dividend to all stockholders, attached to their existing shares. The plan often includes specific provisions on how and when the rights can be exercised and sets a timeframe for expiration. Overall, the Maine Stockholders' Rights Plan of Data scope Corp. acts as a defensive mechanism to safeguard the company and its stockholders against hostile takeover attempts, ensuring that any acquisition or merger is carried out in the best interest of all parties involved.