Voting Rights Plan

Description of Voting Rights Plan. Explanation.

Definition Voting Rights Plan. Description.

A Voting Rights Plan is an anti-takeover mechanism in which a company charters preferred stock with superior voting rights to common shareholders. If an unfriendly bidder acquires a substantial quantity of the target firm's voting common stock, it would not be able to exercise control over its purchase.

Compare with: Anti Hostile Takeover Mechanisms  |  Lobster Trap  |  Staggered Board of Directors

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End of description Voting Rights Plan. An explanation.