Rights Plans Offer Special Benefits for Companies Whose Market Capitalization Has Declined to $500 Million or Below
This memorandum discusses the special benefits offered by a shareholder rights plan (poison pill) to companies whose market capitalization has declined to $500 million or below. Specifically, the memorandum discusses why the "off-the-shelf" shareholder rights plan adoption strategy is problematic for small capitalization companies and the implications of adoption of a shareholder rights plan under RiskMetrics Group's policies.