In this episode, Amy Simmerman & Douglas Schnell review the governance and fiduciary duties surrounding rights plans and poison pills.
For many companies, COVID-19 challenges extend far beyond health and safety. Following the pandemic’s onset, many listed companies saw their stock value drop significantly. In turn, boards and management teams are focused on protecting the company from unfriendly acquirers, which has led to an increase in rights plans and poison pills.
In this episode, Amy Simmerman & Douglas Schnell, partners with Wilson Sonsini Goodrich & Rosati, review the governance and fiduciary duties surrounding these tactics:
- What kind of protection does a rights plan provide, especially during this volatile stock market?
- What advice do they offer boards before taking this course of action?
- What trends are they seeing across the corporate landscape?
In a previous episode, Schnell covers: The Pros, Cons, and Controversies of Poison Pills