shark repellent

A measure designed to repel an unwanted takeover attempt. A supermajority provision, which requires a two-thirds majority instead of a simple majority to approve a takeover, is an example of one tactic. The company also might stagger the terms of the board members in order to make it more difficult for a potential raider to put his or her own slate of contacts in. Shark-repellent tactics might include poison pills and a scorched earth policy. See also poison pill and scorched earth policy.