board-out clause


A provision in a publicly traded company's charter or bylaws that allows the board of directors to invoke the supermajority provision. Should the board of directors decide to exercise the board-out clause, then the consent of more than a simple majority of shareholders will be needed for certain actions - especially in the case of a merger or acquisition. This clause is almost always used as an anti-takeover measure.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
board order boardroom