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dead hand provision

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Financial Dictionary

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 even if shareholders of the target company favor the takeover.

Investopedia Commentary

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.

See also: Board of Directors - BOD, Poison Pill, Proxy Fight, Share Purchase Right, Shark Repellent, Takeover

Also spelled: Dead Hand

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