shareholder-rights-plan

name	shareholder-rights-plan
title	Shareholder Rights Plan
description	Drafts a U.S. shareholder rights plan (poison pill) package including rights agreement, certificate of designations, board memo, Form 8-K, and press release. Applies Unocal/Revlon fiduciary framing, Rule 13d-3 beneficial ownership, flip-in/flip-over economics, and redemption/exchange mechanics. Use when a board addresses a hostile bid, activist accumulation, or plan renewal. Trigger: "poison pill", "rights plan", "rights agreement", "flip-in", "flip-over", "DGCL 203", "Unocal", "Revlon".
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/shareholder-rights-plan
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	corporate
language	en

Shareholder Rights Plan

Produces an execution-ready rights plan package with board rationale and post-adoption compliance steps.

Prerequisites

Collect before drafting:

1. Charter and bylaws (blank-check preferred authority, vote thresholds)
2. Cap table and outstanding equity/derivative positions
3. Board resolution template
4. Proposed Rights Agent and fee terms
5. Trading price range and peer plan comparables
6. Incorporation jurisdiction and exchange listing rules
7. Known large holders, activism context, or inbound bid details

Quick Start

1. Run fact intake checklist (Section 1)
2. Set key plan terms with the board (Section 2)
3. Draft rights agreement per outline (Section 3)
4. Prepare certificate of designations, board memo, and disclosure package (Sections 4-6)
5. Execute post-adoption checklist (Section 7)
6. Use [PLACEHOLDERS] for all client-specific inputs

Workflow

1. Fact Intake

• Incorporation state standards (Unocal/Revlon for Delaware)
• Anti-takeover statute applicability (e.g., DGCL 203)
• Charter/bylaw constraints on rights or preferred issuance
• Exchange rules and proxy advisor policies [VERIFY]
• SEC reporting timeline (Form 8-K within 4 business days) [VERIFY]
• Existing defensive measures and thresholds
• Peer rights plan comparables

2. Key Plan Terms

Term	Default Range	Notes
Trigger threshold	10%-20%	Adjust for ownership concentration
Distribution Date	10 biz days post-trigger or tender offer	Board may extend/shorten
Exercise Price	2x-3x market price	Drives dilution severity
Duration	1-10 years	Align with governance norms
Redemption price	$0.001/Right