The Legal Problems Of Protection Of Bidder Company Shareholders In The Process Of Tender Offer

Taking　the　subject　of　protection　of　shareholder　in　the　process　of　takeover　bid　of　listed　companies　into　account,　the　lawmakers　and　academician　readily　put　their　great　concern　and　professional　wisdom　into　the　studies　of　protection　of　target's　shareholders　from　both　managements　and　bidders,　little　literature,　however,　has　been　written　discussing　whether　bidder　firm　shareholders　are　in　need　of　additional　protections.　The　current　legal　regime　regulating　tender　offer　provide　target　shareholders　with　special　protection,　while　treating　bidder's　shareholders　as　common　investors　in　securities　market,　which　has　been　making　far-reaching　effects　in　the　tender　balance　among　interests　of　relevant　entities　involved　in　the　course　of　transactions.　The　purposes　of　this　paper,　which　is　composed　of　four　chapters,　is　to　show　the　overdue　concern　about　the　neglected　bidder's　shareholders,　and　discuss　the　indispensableness　and　feasible　approaches　of　the　legal　protections　of　shareholders　from　the　viewpoint　of　bidder's　shareholders.　Chapter　Ⅰ　begins　by　discussing　the　differences　of　factors　between　the　fields　of　protection　of　bidder's　shareholders　and　target's　shareholders.　On　the　one　hand,　protective　mechanisms　for　shareholders　of　target　companies　as　a　whole　are　hardly　applicable　to　bidder's　shareholders.　On　the　other　hand,　highlighting　the　emphasis　of　protection　of　bidder's　shareholders　will　not　undermine　the　base　of　legal　protection　of　target's　shareholders.　Chapter Ⅰalso　examines　and　redefines　some　concepts　relevant　to　this　study.　　Chapter　Ⅱ　goes　on　to　examine　the　feasibility　and　efficiency　of　legal　system　of　information　disclosure　and　other　legal　mechanisms　specified　in　company　law　and　securities　law　as　protective　devices　to　bidder's　shareholders.　On　the　basis　of　attaining　a　bird's-eye　view　of　protections　available　to　bidder's　shareholders　in　current　legal　regime　of　China　and　utilizing　and　analyzing　the　results　of　empirical　studies　carried　out　by　domestic　scholars,　this　Chapter　ends　by　concluding　that　there　is　no　adequate　legal　protection　to　bidder's　shareholders　in　current　legal　framework.　　Chapter　Ⅲ　attempts　to　introduce　some　theories　and　proposals　supported　by　three　American　scholars　in　the　realm　of　legal　protection　of　shareholders　of　bidder　companies.　This　Chapter　examines　the　premises　the　scholars　built　their　theories　and　discussions　on　and　methods　they　utilized　to　illustrate　their　ideas.　Chapter　Ⅲ　also　discusses　the　signality　as　well　as　some　defects　of　the　studies　of　above-mentioned　American　scholars.　　　　Chapter　Ⅳ　explains　the　underlying　reasons　for　the　absence　of　enough　attention　and　legal　protections　given　to　bidder's　shareholders.　Market　environments,　limitation　of　legal　transplant,　effect　of　current　legal　system　regulating　acquisitions　of　list　companies　and　other　factors　together　leads　to　the　status　quo.　Finally,　Chapter　Ⅳ　will　present,　and　discuss　some　principles　applied　to　improve　relevant　legal　mechanisms　of　China　to　provide　bidder's　shareholders　with　effective　legal　approaches.　From　the　practical　perspective,　there　is　more　important　to　improve　the　feasibility　of　relevant　rules　and　make　them　more　exercisable　than　solely　resorting　to　innovations　in　current　legal　provisions.