Porcupine clause

Porcupine clause – this phrase is used in the Commercial Law in some jurisdictions, where refers to legal provision, established in Minutes of Association (Establishing Act) of companies. The role of the porcupine provision is to avoid takeovers if there is no approval by the board of directors. This provision is not applicable in legal systems where directors or managers have no voting rights (i.e. rights, applicable to shareholders) and act only as appointed to manage the business affairs of the company.

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