Definition of Anti-greenmail provision:
A special provision in the company's bylaws that prohibits the company's board of directors from approving share rechanges. This could be a precautionary measure to prevent company executives from repurchasing high-premium company shares due to extortion.
The anti-green mail clause acts as a precautionary measure and prevents the board of directors from repurchasing company shares at a price from enemy investors (investing in prices because the person is primarily interested in immediate profits , Not owned by the stock.) This provision requires that when premiums are paid to Green Mailer, all shareholders should be offered the same premium payment. Alternatively, these terms would require most shareholders to pay the same amount to the enemy. .
The anti-green mail clause is a special clause in the company's by-laws that prevents the board of directors from approving green mail payments. Green Mail is basically giving gifts to unwanted parties to keep them away from your opposing intentions. The anti-Green Mail clause eliminates the possibility of boards adopting the fastest solution and paying for unwanted acquisitions of shares in the company, which worsens the situation of shareholders. Greenmail is conceptually similar to blackmail, but green means money.
Meaning of Anti-greenmail provision & Anti-greenmail provision Definition