Define the types of shareholder, Financial Management

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Tactics can be used by company to protect itself.

Before the bid

Types of

Shareholder

Having the right shareholders on board who can be influenced by the board not to sell their shares. Good relationship with shareholders is vital and this is done through effective communication.

AA

Majority  in articles  of  association  can  be  set  to  high  limits  to  approve  a merger oracquisition.

Poison pills

Shareholders may be given rights to buy shares or convertible loan stocks which in event of a takeover bid are exercised. This will increase share capital and require a larger offer from predator company, thereby deterring them.

Asset values

Ensure asset values of company are current so that a high price needs to be paid for them and shareholders are aware of true price of their share.

 

 


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