Poison Pill Rights Plan

Poison Pill Rights Plan means:
a plan that allows a shareholder of a potential takeover target to acquire its stock at a discount upon certain designated trigger events. The adoption of such a plan is not a currently taxable event, but the rights become taxable when the plan is triggered and the rights vest. Former IRC (check if this IRC provision is current here) §305(b)(2) and Former Revenue Ruling (check if this Rev. Rul. interpretation is current) 90-11, 1990-1 C.B. 10.