Motorola’s board of directors voted to terminate the company's shareholder-rights plan.
The company also established a new governance policy providing that any new shareholder-rights plan -- also known as a "poison pill” -- must be subject to shareholder approval within 12 months of its adoption.
The board's actions will accelerate the expiration date of Motorola’s current shareholder-rights plan to Aug. 1, 2006, from November 2008.
“Our decision to terminate the shareholder-rights plan and establish this new policy reflects the board's continuing commitment to corporate-governance best practices," chairman and CEO Ed Zander said in a prepared statement. "The board believes our new policy is responsive to our shareholders' concerns and also adequately protects our shareholders' best interests.”
