Definition for : Strategic assets (poison pills)

Strategic Assets can be patents, brand names, or subsidiaries comprising most of the business or generating most of the profits of a group. In some cases the company does not actually own the Assets but simply uses them under license. In other cases these Assets are located in a Subsidiary with a partner who automatically gains control should control of the Parent company change hands. Often contested as misuse of corporate property, Poison pill arrangements are very difficult to implement, and in practice are generally ineffective.

(See Chapter 40 Setting up a company or financing start-ups of the Vernimmen)

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