Summary of Article:
Riverbed Technology is the application performance company. Riverbed delivers application performance for the globally connected enterprise. On 11th November 2013,
Riverbed announced that its board of directors has adopted a stockholder rights plan (the "Rights
Plan" or "Plan") and declared a dividend distribution of one preferred share purchase right on each outstanding share of the Company's common stock. The Board of Directors adopted the Rights Plan in order to help promote the fair and equal treatment of all stockholders of the Company and ensure that the Board remains in the best position to discharge its fiduciary duties to the Company and its stockholders. Under this plan, stockholder will get right with per preferred share. The Rights Plan imposes a significant penalty upon any person or group which acquires 10.0 percent (or 20.0 percent in the case of institutional investors who report their holdings on Schedule 13G) or more of the Company's outstanding common stock without the approval of Riverbed's Board. Riverbed's Board of Directors may redeem the rights for a nominal amount at any time on or prior to the 10th business day (or such later date as may be determined by the Board) following an event that causes the rights to become exercisable. Under the Plan's terms, it will expire on November 11, 2014.
Connection to course:
Board of directors plays a crucial role to control and govern the company. In this case board of directors took a decision which will give equal treatment to all stockholders and protect them. For the benefit of stockholders directors adopted the “Right Plan”