# Shareholder Rights Plan

**IRI:** https://folio.openlegalstandard.org/R70UKIyaOuSXRR5xa6Vjm2e

## Labels

**Preferred Label:** Poison Pill

## Definition

A Shareholder Rights Plan, which is often called a "poison pill," is a defensive strategy employed by corporations to deter hostile takeovers. This plan gives existing shareholders the right to buy additional shares at a discount, thus diluting the potential acquirer's stake.

## Sub Class Of

- https://folio.openlegalstandard.org/RLxL22W67GcWCpN6VKZd50

**Deprecated:** False