Series 79 practice questionmediumAnti-Takeover Defenses
Which anti-takeover measure increases the cost of a hostile acquisition by requiring a potential acquirer to win multiple annual elections to gain board control?
- APoison pill
- BStaggered board✓ Correct answer
- CSupermajority voting
- DStandstill agreement
Explanation
Why B — Staggered board
Staggered boards slow hostile takeovers by dividing board elections over time. The trap is confusing this with mechanisms that directly dilute or restrict voting rights.
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