Definition Staggered Board of Directors. Description.
The members of a Staggered Board of Directors have terms that
expire at different times. This way of replacing boards is a tactic used to
prevent hostile takeovers, because a potential acquirer has to wait longer
to take control of the board.
Originally, all directors were elected simultaneously at the
annual shareholders meeting.
A disadvantage of this method is that it limits the shareholder
control of accountability in its directors through annual elections.
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Staggered Board of Directors Special Interest Group
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Special Interest Group (2 members)
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Compare with:
Anti Hostile Takeover
Mechanisms |
Corporate Governance
| Lobster Trap
| Directors and Officers Liability Insurance |
Voting Rights Plan
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