Poison Pill Effect Deters Corporate Predators.

Poison Pill Effect Deters Corporate Predators.

The Poison Pill. Sounds like a suicide attempt. Well, it really only is, in this context, about a corporate raider. It’s an almost forgotten term until I met a lawyer to help me reorganize some of my assets one day. It was obvious more asset protection was required to combat new negative developments in corporate laws.

The Poison Pill was really a term borrowed from those Wall Street Geniuses in managing their assets through a protection clause or structuring their corporation from a take over or a corporate raider. You could say, that because of the more modern laws governing public corporations, this method of “Poisoning the Corporate Raider” against hostile takeovers often became the method of choice against unfriendly takeovers.

And lo and behold, new laws were created which also allowed the smaller and also often privately held companies to organize their assets in a similar way. In fact, a growing number of businesses do so today to dissuade would be lawsuits. This method is being used widely by smarter business lawyers where they will structure for their clients’ businesses in such a way that:

1) Sometimes all the lawsuit wins against the company is an empty shell with almost no operating assets at all – it is just a shell to operate the business but ownership may be an “Offshore” company for example.

2) Thus, making the actual business assets impossible or really difficult to get at and the potential of leaving the plaintiff with mega loads of expenses, taxes and debt makes it unsavoury or even dangerous – thus the Poison Pill effect.

One does not need to actually use an offshore company for this purpose but a sharp business lawyer can set up your corporation/s to protect you as much or as far as you need to do so.

Remember the phrase “Posession is 9 tenths of Ownership?” Well, keep the assets out of anyone’s reach, including the government. But be very careful that this is done legally, despite the moral public pitch of the respective big governments who often claim that smugglers and money launderers use offshore tax havens.

The truth is, all investigations have found extremely small numbers of accounts that are really “illegal”. This flies in the faces of the complaining governments when their own investigations turn up a higher frequency of fraud and money laundering within their own borders.

Taken to the Cleaners
I dare say that every single one of the big guns in business make use of severe asset protection and often use the poison pill merger or takeover prevention, except for a very few I know – who actually have been in the news in the past several years, being taken to the cleaners because they failed to adequately protect their assets.

The truth is, every major country (Really mostly the G 8 but have lately included some other countries like China and India ) make it seem illegal or immoral. This has been going on for centuries and is not likely to stop any time soon.

So, let’s get back to the point. If you own significant assets, or if you have a business that is running well and have not protected yourself and your assets, you will be well advised to do so right now. Who knows which predator is awaiting to pounce.

So, in knowing that it is next to impossible to get anything out of you; knowing that they will likely be saddled with all sorts of repayable debts and they can’t hold you responsible while you still run off laughing to the bank; and that they may not even win; do you think anyone will think lightly to want to go after your company?

Just remember, do it all legally – otherwise, you’ll get into very hot soup.

Note:
The situation in each country is different and it will be wise to find a reputable expert within that country to do this structuring for you.

Technorati Tags: Asset Protection, Hostile Takeovers, Poison Pill, Poison Pill Merger, Wall Street

Tags: Asset Protection, Hostile Takeovers, Poison Pill, Poison Pill Merger, Wall Street
Posted in Achieving Financial Freedom, Offshore Tax Haven, Poison Pill | 2 Comments »

Politics vs Politics as Wall Street Dives.

Politics vs Politics as Wall Street Dives.

When it comes time for the political mudslinging contests, I take a vacation. Or at least pretend I don’t hear very well and try not to watch the television too.

This has nothing to do with not wanting to know nor participating in something that is supposed to hold the highest honours of the highest office in the land that has degenerated into a school yard style cat calling and bully tactics.

Shame on them as they (the politicians and would be leaders of our nations) try to make us watch all that on the mega millions spent of peoples’ money on ads and television. There’s so much done in bad taste…yuck! No, I will not even spare the time to serve up any images on this blog. There’re already enough of them on the internet too.

Instead, I am far more concerned with what wall street will do when the US presidency is up for grabs. Will the markets for one sector tank or fly? Will the whole thing go belly up or will gold…You get my point. There’s so much to watch out for.

But what’s the point if you’re so diversified in so many countries? Remember that when the US economy catches the flu, much of the world’s investments can suffer a stroke. And that is my primary concern. What do I do to protect my assets? What have you done? What did the experts in your market tell you to do?

So what does a full 500 point nose dive in the value of the US stock index mean for the rest of the world? Take a quick peek here.

Simply put, everyone else gets sh*****d. Take a look at this video report when the much vaunted Lehman Brothers collapsed.

It almost does not matter where you live in the world. This can happen. Also, the US dollar and some other currencies as well simply got hit big time. Your lifestyle could have gotten alot more expensive suddenly. But be wise. Perhaps, you can start a buying or investment spree now that there are great pickings to be had.

So, be wise and keep to the safety of hedging your money and assets in a variety of havens and investments. Heck, eventually having some “homes” to go to in strategic places in the world may not be a bad idea after all.

This is the second part of why I appeared to have my head in the sand about the nastiness in politics.

Technorati Tags: Diversified, Politics, Wall Street

Tags: Diversified, Politics, Wall Street
Posted in Politics and Wall Street, Sovereign Journey | 1 Comment »