Dead Hand Provision

Filed Under » ,
Dictionary Says

Definition of 'Dead Hand Provision'

A stipulation on a defense mechanism (or poison pill) used by companies in order to protect against a merger or takeover by another company. The dead hand provision prevents the removal of the poison pill, a strategy used to discourage a hostile takeover, even if shareholders of the target company favor the takeover.
Investopedia Says

Investopedia explains 'Dead Hand Provision'

A dead hand provision states that only the original directors who put the provision into place can dismantle the pill, so any new directors are prevented from interfering.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Board Of Directors - B Of D

    A group of ...
  2. Poison Pill

    A strategy used ...
  3. Proxy Fight

    When a group of ...
  4. Share Purchase Rights

    A type of ...
  5. Shark Repellent

    Slang term for ...
  6. Takeover

    A corporate ...
  7. Provision

    A legal clause ...
  8. Pooling Of Interests

    A method of ...
  9. Synergy

    The concept that ...
  10. Busted Takeover

    A highly ...

Articles Of Interest

  1. Benckiser Buys More Of The Coffee Business (CBOU, SBUX, RBGPY, KRFT)

    Reimann family holding company is paying $340 million for Caribou Coffee, and paid $1 billion for Peet's in July. Is it looking to take on Starbucks?
  2. Understanding Pro-Forma Earnings

    These figures can either shed light on a company's performance or skew it. Find out why.
  3. The Advantages Of Investing In Aggressive Companies

    Often the most attractive companies are also a little fierce - learn how to spot healthy corporate aggression.
  4. 6 Decisions That Cost Companies Millions

    Here are some of the worst business decisions of all time, made across a broad range of sectors and industries.
  5. Finding The Best Buyer For Your Small Business

    Learn more about the process business owners go through to seal a merger or acquisition deal.
  6. Find Equity Opportunities With Currency Moves

    Understanding the relationship between these markets can help you spot profitable stocks.
  7. Trading The Odds With Arbitrage

    Profiting from arbitrage is not only for market makers - retail traders can find opportunity in risk arbitrage.
  8. 8 Good Intentions With Bad Outcomes

    Here are some historical examples of companies that tried to do the right thing and failed miserably.
  9. Understanding Leveraged Buyouts

    LBOs are often presented as predatory by the media, but it really depends on which side of the deal you're on.
  10. The Merger - What To Do When Companies Converge

    Learn how to invest in companies before, during and after they join together.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center