The fiduciary duty of the board is to protect the company as an ongoing concern that seeks to increase its enterprise value, and also to protect the interests of shareholders, including minority shareholders.
This is to prevent say a majority shareholder and/or group of employees from raiding the business of its value.
So a case for a poison pill might be well made to prevent a person from taking a controlling stake to then expose the company’s IP (code base) because they have some agenda, or prevent them running the company into the ground by causing a flight of talent, or by breaking some success formula.
This is to prevent say a majority shareholder and/or group of employees from raiding the business of its value.
So a case for a poison pill might be well made to prevent a person from taking a controlling stake to then expose the company’s IP (code base) because they have some agenda, or prevent them running the company into the ground by causing a flight of talent, or by breaking some success formula.