Tips on How to Maintain Control of Your Company
- Prepare Immediate Reaction Team
Create a small group that plans for and is then capable of responding to activist activity.
- Monitor Trading Activity
Watch out daily for share accumulation by activist holders and potential acquirers.
- Know and Prepare Your Board
Maintain board unification on key decisions to keep activists from targeting vulnerable directors.
- Institute Advance Notice Provisions
Restrict activists’ opportunity to force board turnover by adding advance notice bylaw.
- Limit Stockholder Special Meetings
Eliminate or make difficult the right of stockholders to call special meetings.
- Implement Indemnification Rights
Avoid potential loss of expense advancement by entering into contractual agreements with directors.