The Legal Regulation Of Anti-takeover Actions Of Target Corporations

With the development of the worldwide economy, takeover has become an irresistible trend. A target corporation, as the object of the takeover, always takes some resistant actions, which are known as the anti-takeover actions of target corporations. Corporation anti-takeover has both advantages and disadvantages. On one hand, effective anti-takeover can stimulate competitions in market and provide an opportunity for shareholders to bargain with the purchaser. On the other hand, disorderly anti-takeover can cause the waste of the social resources and increase the cost of takeover. Moreover, it can cause many conflicts of interest among all kinds of subjects. So it is necessary to regulate anti-takeover actions through laws. But in China, the deficiency in law is obvious. Only a few regulations in"Management Methods of Takeover of listed Corporations"are related to anti-takeover actions. However, anti-takeover actions occurred frequently in the process of economic development in China. Obviously, law lags behind the development of reality.This causes a lot of disputes about the legitimacy of anti-take over actions. So it is urgent and important to establish an anti-takeover law system in China. There are five parts in the dissertation. Part One introduces the connotations of anti-takeover actions of target corporations and the reasons for regulating them. Firstly, this article defines anti-takeover actions of target corporations, based on the conceptions of take-over and hostile takeover. Anti-takeover actions of target corporations are some actions taken by target corporations to prevent and resist purchaser's takeover, in order to avoid the transformation of control power. These actions have some distinct...