Shareholder Rights Plan
A shareholder rights plan is a mechanism, commonly used by public companies, designed to assist the board in ensuring the fair and equal treatment of all shareholders in the face of an actual or contemplated unsolicited bid to take control of the company.
The objective of Veresen’s Shareholder Rights Plan is to ensure that in the event of a bid for control through an acquisition of the company’s common shares, the Board of Directors of the company has sufficient time to evaluate the bid and explore and develop alternatives for maximizing shareholder value. The board is required to carry out the administration of the plan in the best interests of the company with a view to maximizing shareholder value.
Amended and Restated Shareholder Rights Plan Agreement – May 6, 2014 (PDF)