Which phrase best describes a Porcupine Provision?

The phrase that best describes a Porcupine Provision is a charter amendment that activates in response to a takeover announcement. This provision is designed to protect a company from hostile takeovers by allowing certain defensive measures to take effect automatically when an acquisition attempt occurs.

Essentially, the Porcupine Provision serves as a deterrent against unwanted suitors by making it more challenging or costly for them to acquire the company. It reflects a defensive strategy management can use to preserve the company's autonomy and influence during acquisition scenarios.

Understanding this distinction is vital because it highlights the nature of corporate governance and the strategic measures companies can employ to safeguard themselves against external threats, particularly during periods when their market value might attract potential acquirers.