Entrenchment
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Entrenchment is a phenomenon that occurs when a company has such a weak board of directors and has such strong antitakeover provisions in its corporate charter that senior managers feel there is little chance of being removed.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Entrenchment. Occurs when a company has such a weak board of directors and has such strong antitakeover provisions in its corporate charter that senior managers feel there is little chance of being removed.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
