The New York Stockholders' Rights Plan of Data scope Corp, also known as a "poison pill" strategy, is a corporate governance mechanism put in place by the company to protect its shareholders' rights during potential hostile takeover attempts. This plan is designed to prevent an acquirer from gaining control of the company without paying a fair price to shareholders. The primary purpose of the New York Stockholders' Rights Plan is to deter unsolicited or coercive takeover attempts by discouraging potential acquirers from accumulating a substantial stake in the company's stock without prior approval from the board of directors. It is important to note that this plan is specific to Data scope Corp, and other companies may have their own variations of stockholders' rights plans based on their unique needs and circumstances. Under this plan, Data scope Corp's board of directors authorizes the distribution of rights, known as "preferred share purchase rights," to all existing shareholders. These rights are attached to the company's common stock and are typically triggered when a hostile takeover is imminent or a certain threshold of ownership is crossed by an acquirer. Activating these rights enables the existing shareholders (excluding the would-be acquirer) to purchase additional shares of the company's stock at a significant discount, making it more costly and difficult for the acquirer to gain control. The New York Stockholders' Rights Plan of Data scope Corp consists of various provisions and measures to ensure the interests of shareholders are protected. These may include provisions for the redemption or exchange of the rights, limitations on the acquirer's ability to exercise voting power, and other preventive measures. The plan typically puts a time limit on the rights, usually ranging from one to three years, after which they expire or need to be renewed if deemed necessary by the board. It is important to mention that the New York Stockholders' Rights Plan of Data scope Corp is tailored specifically for the laws and regulations applicable in New York and may differ from stockholders' rights plans implemented by other corporations in different jurisdictions. Other variations of stockholders' rights plans used by different companies may include the California Stockholders' Rights Plan, Delaware Stockholders' Rights Plan, or the Massachusetts Stockholders' Rights Plan, each complying with the laws and regulations of their respective states. Overall, the New York Stockholders' Rights Plan of Data scope Corp serves as a protective mechanism to safeguard the rights and interests of the company's shareholders by deterring hostile takeovers and ensuring a fair price is paid for the acquisition of the company's control.