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How are poison pills legal? If the board can make arbitrary rules can’t they just zero out Musks or anyone else’s shares right now?

Or say “Anyone with the last name of Musk now owns type D share with 1/100th ownership value”.

Poison pills seems pretty close to doing just that.



From ArsTechnica:

“Even before Friday, Twitter had bylaws that "could have the effect of rendering more difficult, delaying, or preventing an acquisition deemed undesirable by our board of directors," the company said in a February 2022 SEC filing. That includes "a classified board of directors whose members serve staggered three-year terms," and the ability to "authoriz[e] 'blank check' preferred stock, which could be issued by our board of directors without stockholder approval and may contain voting, liquidation, dividend and other rights superior to our common stock."

Sounds like the board can do pretty much anything they want with Twitter’s stock. I find it incredible that a regulated public company can issue abitrary shares with any terms they want.

They made these rules before Friday. but it also sounds like they could have made them today if they wanted to.


As potential regular shareholder any of that type provisions just sounds extremely scary and overreaching...


Then there's the question of whether such bylaws should be legal.


That is insane. Was never a holder of $TWTR and never will be given these insane bylaws which allow the board to issue preferred stock without any accountability.




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