A
measure designed to repel an unwanted takeover attempt. A supermajority provision, which requires
a two-thirds majority instead of a simple majority to approve a takeover, is an
example of one tactic. The company also might stagger the terms of the board
members in order to make it more difficult for a potential raider to put his or
her own slate of contacts in. Shark-repellent tactics might include poison
pills and a scorched earth policy. See also
poison
pill and
scorched earth policy.