The Collin Texas Stockholders' Rights Plan of Data scope Corp. is a corporate governance measure implemented by the company to protect stockholders' interests and maintain stability in the event of an unsolicited takeover attempt or change in control. This plan, also known as a "poison pill," is designed to provide the board of directors with more time and leverage to negotiate with potential acquirers on behalf of the shareholders. One key aspect of the Collin Texas Stockholders' Rights Plan is the issuance of rights or "poison pills" to existing shareholders. These rights allow stockholders to purchase additional shares of the company's stock at a discounted price, making any takeover attempt prohibitively expensive for the acquiring party. The plan is typically triggered when an acquirer reaches a certain ownership threshold, often 15% of the company's outstanding shares. The Collin Texas Stockholders' Rights Plan of Data scope Corp. aims to protect the interests of stockholders by deterring potential hostile takeovers, which could potentially devalue their investments or result in unfavorable terms. By implementing this plan, the company seeks to prevent actions such as coercive tender offers, hostile acquisitions, and other unsolicited takeover attempts without the board's approval. These Stockholders' Rights Plan of Data scope Corp. has a few variations: 1. Standalone Rights Plan: Under this type, the stockholders' rights plan is enacted as a standalone measure, independent of any potential change in control scenario or acquisition proposal. It is typically adopted in order to deter potential hostile takeovers regardless of any ongoing interest from third parties. 2. Flip-in Rights Plan: This type of stockholders' rights plan allows existing shareholders, excluding any potential acquiring party, to benefit from the discounted price rights. Existing stockholders are given the opportunity to purchase additional shares in the company, increasing their ownership stake and diluting the acquiring party's influence. 3. Flip-over Rights Plan: This variation of the stockholders' rights plan enables existing stockholders to acquire shares in the acquiring company at a significantly discounted price, following a change in control. This allows shareholders to benefit from potential upside in the acquiring company's stock value while discouraging hostile takeovers. The Collin Texas Stockholders' Rights Plan of Data scope Corp. aims to protect the interests of stockholders and offers them a fair opportunity to maintain their ownership stakes. By implementing various types of rights plans, the company can effectively deter unsolicited takeovers and ensure negotiations align with the best interests of stockholders.