Poison Pill Legal Issues

As one of the most important defensive measures of hostile acquisitions, poison pill has significant impact on corporate management structure and corporate market control. Based on the analysis of character and classification of poison pills, this article analyzes the validity and supervision of poison pills. Because the capital market in the US is highly developed and the mechanism of takeover is relatively mature, the study of the validity and police of anti-takeover method is well-developed. So this article analyzes how poison pill is working in the US. In the end, this article demonstrates how to perfect the anti-takeover system of listed companies in China.