Staggered board of directors

Definition:

Occurs when a portion of directors are elected periodically, instead of all at once. Board terms are often staggered in order to thwart unfriendly takeover attempts, since potential acquirers would have to wait longer before they could take control of a company's board through the normal voting procedure.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Special Claim on Residual Equity (SCORE)

A certificate that entitles the owner to the capital appreciation of an underlying security, but not to the dividend income from the security.

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