Shareholder activism over poison pills has stepped up this year, but Delaware courts will likely squelch continued pill opposition, legal experts said. Since January, a significant number of binding bylaw proposals over shareholder rights plans have come to a shareholder vote, noted Arthur Crozier, co-chairman of New York-based proxy solicitor Innisfree M&A Inc. And there is every reason to anticipate that shareholder voting on this issue will be a trend for the future, he added. If the state of Delaware, where 60% of U.S. companies are incorporated, rules that the bylaw amendments are valid and binding, then expect to see more binding proposals in the next year, he added.
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