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Simple English definitions for legal terms

anti-greenmail provision

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A quick definition of anti-greenmail provision :

An anti-greenmail provision is a rule in a company's charter that stops the board of directors from paying a shareholder more than their shares are worth to avoid a hostile takeover. Hostile takeovers happen when someone tries to take control of a company by buying up a lot of its shares. Greenmail payments are bad for the company because they waste money that could be used for other things. Anti-greenmail provisions help prevent this from happening, but they also make it easier for someone to take over the company if they really want to. Nowadays, there are other ways to stop hostile takeovers, so greenmail payments are not as common as they used to be.

A more thorough explanation:

An anti-greenmail provision is a rule in a company's charter that stops the board of directors from making greenmail payments. Greenmail payments are when a company pays a shareholder an inflated price to buy their stock. This practice became popular in the 1980s when raiding was common. Raiders would take over companies through hostile takeovers and sell off their valuable assets. To avoid this, companies would use greenmail payments to buy out the raider's interest. However, this harms the company by reducing the money available for other business purposes.

Anti-greenmail provisions prevent executives from abusing this practice and reduce the potential for harm to the company. However, it also increases the chances that a raider will successfully liquidate the company. In recent years, the use of greenmail has decreased due to the adoption of poison pill clauses and regulatory taxes designed to reduce the profitability of greenmail-related practices.

For example, if a company has an anti-greenmail provision in its charter, the board of directors cannot make greenmail payments to a shareholder who is threatening their position. This prevents executives from using company funds to protect their jobs instead of investing in the business.

Another example is if a raider tries to take over a company, but the company has an anti-greenmail provision in place. The raider cannot force the company to make greenmail payments, which makes the takeover less profitable and less likely to succeed.

anti-contest clause | anti-lapse statute

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babycat
15:15
I love my hot chick friends. Don't know where I would be without them
15:15
Crazy story, I had dinner with the dad of a friend of mine and he just openly went on Tinder in front of me and the other guys. Later my mom ran into him with another woman (not his wife/friend's mom) and he got very uncomfortable and never texted her again
15:15
I can't imagine what it's like being a cheater or like a serial dater. Shit seems so nervewracking
BulbasaurNoLikeCardio
15:16
My wife and I have great and open communication but one night she kept asking me why this girl is blowing up my phone with messages/pictures so I showed her... she got a new puppy and got drunk so had her puppy doing a fashion shoot at 11pm.
babycat
15:16
Awwww
BulbasaurNoLikeCardio
15:17
I need more hot friends to hang with, the town we are in sucks butt for it and everyone seems shifty/flaky.
glovediedthisishismom
15:17
whoever was asking for an AU wave earlier fished their wish
babycat
15:18
I keep my dating very clean and above board. No overlaps, no ambiguities. If you want to go into some sort of public office in the future it's good to be smart about things like that
babycat
15:18
So many politicians have sex scandals and that's how they get blackmailed and other people have power over them. I mean of course there are ethical and emotional issues too but it's literally just smart to not be a cheater
BulbasaurNoLikeCardio
15:19
I would never go into public office as it drags in your family as well. Dating is so much easier then some people make it out to be and it is not that hard to not cheat. I would always tell my soldiers to rub one out before making a big decision so they arent acting dumb
BulbasaurNoLikeCardio
15:20
Like if more cheaters just paused and rubbed one out they would be like you know maybe ill just watch some TV
babycat
15:20
I've seen some people do a really good job keeping their family out of it. But it really is an "anything they can use against you, they will" type of vibe
babycat
15:21
Ugh I need to go work on essays bye folks
BulbasaurNoLikeCardio
15:22
I don't do anything I can be blackmailed with, I like money too much to be sketch. Have fun doing your essays and a good weekend
15:23
don't have the motivation to work on essays
BulbasaurNoLikeCardio
15:25
I got to work on essays for finals but I'm like that is a next week me problem. I am glad to be done with LS ones. I felt weird talking about myself
babycat
15:28
Bulbasaur if you weren't constrained by location I would say you should apply to Northwestern. They love applicants like you
BulbasaurNoLikeCardio
15:30
@babycat: what makes you say that?
15:31
sorry i already asked this and forgot to check but how much does a masters degree help for admissions? i rly want to go to northwestern or uchicago but im worried about my stats
glovediedthisishismom
15:32
some of you be so focused on the cheese you forgot about the trap
BulbasaurNoLikeCardio
15:32
I have not talked to northwestern or uchicago but the schools I did talked to said graduates are nice but they cant be hard stats to compare to others as not everyone has one
babycat
15:34
@BulbasaurNoLikeCardio: they really like non traditional applicants and older students
babycat
15:35
there are plenty of non trads who get admitted to nw with below median stats bc of their stories
snow
15:37
i want NW bad
JumpySubsequentDolphin
15:37
@glovediedthisishismom: im gonna get this tattooed
snow
15:38
hoping my 3 years of legal experience help!
BulbasaurNoLikeCardio
15:38
Im not that old lmao Ill see if I can convince the wife to allow me to apply and research the area more. Just worried that I wont have that intellect that a rank 9 school would need
snow
15:38
shoot your shot bulb
snow
15:38
dont tell yourself that.
BulbasaurNoLikeCardio
15:40
I think babycat just wants me close for when she gets into Uchicago lol For me the locations of the school and environment around it matters a lot
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