On The Acquisition Of Listed Companies In The Legal System Of Protection Of Minority Rights

Corporate takeover through the public markets (hereinafter "takeover") means the legal act intending to get the control of a public corporation by means of acquisition of its shares. Since the acquirers, controlling stockholders or the aimed company's Board of Directors who having some advantages naturally, it is difficult for those minority stockholders to protect their interests properly in the event that the company is confronted with coercive or unfair takeover tactics. Therefore the legislation should supply some help to them. In the western countries, U.K. and U.S.A in particular, there exists some mature laws asking for some basic principles such as "treating all stockholders equally" and "publicly disclosing information" to keep comparatively fair situations for all parties. Now in China we have a better law system than before to protect the interests of minority stockholders although we still have a long way to go.