Anti-Greenmail Provision

A special clause located within a firm's corporate charter that acts as a deterrence against the board of directors passing a share buyback.

This provision acts as a preventative measure, restraining managers from buying back company stock at significant premiums due to greenmail. A majority shareholder may be able to influence the board into purchasing shares at a significant premium, so the anti-greenmail provision requires that a majority of shareholders (excluding the majority shareholder) agree to the buyback.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Provision — A legal clause or condition contained within a contract that requires or prevents either one or both parties to perform a particular requirement by some specified time. Specified requirements can include, but are not limited to, sunset, soft call …   Investment dictionary

  • Bon Voyage Bonus — Cash, securities or other assets paid to an individual or group for ceasing a particular activity. A bon voyage bonus is most often associated with hostile takeovers, with the target company paying the raider for not making further attempts to… …   Investment dictionary

  • Gulf Oil — Infobox Company company name = Gulf Oil International Ltd company company type = Private: Amas Holding SA (Luxembourg) ultimate holding company company slogan = Your Local Global Brand foundation = 1985 in Pittsburgh, Pennsylvania location =… …   Wikipedia

  • United States dollar — USD redirects here. For other uses, see USD (disambiguation). United States dollar …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.