Most businesses prefer to control their own destiny in the marketplace, therefore when a shark strikes, shark repellant might cause the predator to flee in search of weaker prey. While the notion appears fair based on the principle of self-determination, many shark repellant methods are not in the best interests of shareholders since they may prevent them from maximizing shareholder value.
Board directors are commonly believed to have a fiduciary obligation to shareholders and should thus be open to any proposal, hostile or not. The board’s spraying of shark repellant is not typically regarded as a shareholder-friendly measure. Poison medicines, scorched earth tactics, golden parachutes, and safe harbor plans are all forms of shark repellant.