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With reference to poison pill, consider the following statements:
1. A poison pill is officially known as a shareholder rights plan, and it can appear in a company’s charter or bylaws or exist as a contract among shareholders.
2. There are different types of poison pills, but usually, they allow certain shareholders to buy additional stock at a discounted price.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
With reference to poison pill, consider the following statements:1. A ...
's bylaws or charter.
2. The purpose of a poison pill is to deter hostile takeovers by making the acquisition of a company's shares prohibitively expensive or diluting the value of the shares.
3. Poison pills typically involve the issuance of new shares or rights to existing shareholders, which can be exercised if a hostile takeover is attempted.
4. Poison pills can be controversial as they can limit the ability of shareholders to sell their shares for a premium price in the event of a takeover.
5. Poison pills are not universally accepted, and some jurisdictions have regulations in place to limit or prohibit their use.

All of these statements are true.
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With reference to poison pill, consider the following statements:1. A ...
Twitter countered Elon Musk’s offer to buy the company for more than $43 billion with a corporate tool known as a poison pill, a defensive strategy by boardrooms trying to fend off takeovers.
  • This defense mechanism was developed in the 1980s as company leaders, facing corporate raiders and hostile acquisitions, tried to defend their businesses from being acquired by another enterprise, person or group.
  • A poison pill is a maneuver that typically makes a company less palatable to a potential acquirer by making it more expensive for the acquirer to buy shares of the target company above a certain threshold.
  • The strategy also gives a company more time to evaluate an offer and can give the board leverage in trying to force a direct negotiation with the potential acquirer.
  • A poison pill is officially known as a shareholder rights plan, and it can appear in a company’s charter or bylaws or exist as a contract among shareholders.
  • There are different types of poison pills, but usually, they allow certain shareholders to buy additional stock at a discounted price.
  • Hence both statements are correct.
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With reference to the economic policies of the British in India and its impact, consider the following statements: India's export surplus became vital for Britains' balance of payments by the end of the nineteenth century. The organised money market was completely under the British control. Which of the statements given above is/are correct?Expalantion: The British continued to exploit India's economy. The burden of East India Company's London establishment and dividends to its shareholders was replaced after 1858, by the expenditure on the Secretary of State's India Office. The Indian debt in England which was already considerable as a result of the Company's military ventures and suppression of the mutiny was further increased, when compensation to the Company's shareholders was added to Government of India's account. Both Home charges and private remittances were channelised through Indian exports as pointed out by the nationalist economists from Dadabhai Naoroji onwards. The character of economic drain which was originally mercantilist, underwent a change and it now took the form of exploitation through free trade. In the later stage, it got linked with the structure of British Indian finance capitalism. Statement 1 is correct: In fact, India's export surplus became vital for Britains' balance of payments by the end of the nineteenth century. The British rule inhibited and curbed indigenous industry through a variety of structural constraints. The government policies actively promoted the European enterprise and discriminated against Indians. Statement 2 is not correct: The outstanding feature of the Indian money market was its dichotomy; it consisted of two fairly distinct sectors, the organized and the unorganized. These two were not entirely unconnected, but the links were rather loose. The constituents of the organized sector of the Indian money market were the Imperial Bank of India, the exchange banks, and the Indian joint-stock banks. The unorganized sector comprised the indigenous bankers, moneylenders, chit funds, nidhis, etc., etc. The co-operative credit institutions occupied a somewhat intermediate position.

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With reference to poison pill, consider the following statements:1. A poison pill is officially known as a shareholder rights plan, and it can appear in a company’s charter or bylaws or exist as a contract among shareholders.2. There are different types of poison pills, but usually, they allow certain shareholders to buy additional stock at a discounted price.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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With reference to poison pill, consider the following statements:1. A poison pill is officially known as a shareholder rights plan, and it can appear in a company’s charter or bylaws or exist as a contract among shareholders.2. There are different types of poison pills, but usually, they allow certain shareholders to buy additional stock at a discounted price.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to poison pill, consider the following statements:1. A poison pill is officially known as a shareholder rights plan, and it can appear in a company’s charter or bylaws or exist as a contract among shareholders.2. There are different types of poison pills, but usually, they allow certain shareholders to buy additional stock at a discounted price.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to poison pill, consider the following statements:1. A poison pill is officially known as a shareholder rights plan, and it can appear in a company’s charter or bylaws or exist as a contract among shareholders.2. There are different types of poison pills, but usually, they allow certain shareholders to buy additional stock at a discounted price.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
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