RE: Shareholders Rights Plan...hehehehe......well, let's just put it this way:
Let's say that you buy a condo in a tropical area...You buy it on a speculation that you heard that the area is going to be developed and many condos will be built and the property VALUE will increase 10 fold. Initially, your name is the only one on the land title, but you bring in 5 additional people and now you have an investors group, and you then proceed to use yours and thier money to purchase more condo's in the area.
In order to protect everyones interest as the value skyrockets, you all take a quick trip to the laywers office and sign some paperwork saying that all 6 signatures need to be in place before you sell any of your properties, that way everyone has a say in what price and when to sell, because now the big money is after your condos and they want in before the rush is over. Capeesh!
I will leave you with one question....If in this scenario, the price is dropping and no one is banging on your door for your properties.......why would you need a rights plan at that time, unless you are preparing for a future run up?
Only when the true value of your properties begins to show, will someone start to ask how we will handle a takeover.
Hope this is clear enough, and this is only how I see it, other, I am sure will see this much differently.