A critical analysis of whether allowing directors to implement anti-takeover defences is beneficial for all corporate constituencies

Essay from the year 2018 in the subject Business economics - General, grade: A, University of Edinburgh (Edinburgh Law School), course: Corporation Law and Economics, language: English, abstract: This essay examines the question whether allowing directors to implement anti-takeover defences is beneficial for all corporate constituencies. Beginning with the classification of the topic in the law and economics context of the market for corporate control in Chapter 2, I will briefly outline in Chapter 3 the scenarios in which anti-takeover defences usually come into operation, namely hostile takeovers. Chapter 4 presents the most common anti-takeover defences and sets out the legal framework to what extent directors are permitted to adopt such defences in accordance with the applicable law. A distinction is made between UK and US law, with the latter focussing on Delaware law, where more than a half of all US publicly traded corporations are established. The Delaware Court of Chancery and Supreme Court have developed an extraordinary body of jurisprudence concerning corporate takeovers and anti-takeover defences. Chapter 5 points out potential impacts on the various constituencies of a company and deals with the fact why their interests have to be regarded in the takeover context. Finally, Chapter 6 critically evaluates anti-takeover defences from different stakeholder perspectives and concludes that these are not beneficial for all corporate constituencies, but for directors only.

Thomas Böhm ist ein deutscher Jurist und Rechtsanwalt. Während seines Studiums der Rechtswissenschaften an der Universität Passau spezialisierte er sich auf die Rechtsgebiete Kapitalgesellschaftsrecht, Wertpapier- und Kapitalmarktrecht sowie Internationales Privat- und Verfahrensrecht. Nach erfolgreichem Abschluss des Rechtsreferendariats im Oberlandesgerichtsbezirk Nürnberg arbeitete er mehrere Jahre als Rechtsanwalt in einer internationalen Großkanzlei. Dort beriet er schwerpunktmäßig nationale und internationale Investoren, Fonds und Unternehmen im Rahmen von Immobilientransaktionen, Mergers & Acquisitions sowie im Bereich des gewerblichen Mietrechts. Thomas Böhm absolvierte ein Master of Laws (LL.M.) Studium an der University of Edinburgh im Schwerpunkt Corporate Law. Hierbei beschäftigte er sich eingehend mit dem Englischen Gesellschaftsrecht sowie dessen Ökonomie, Corporate Governance, Europäisches Arbeitsrecht sowie Internationales Handelsrecht. Derzeit arbeitet Thomas Böhm als Rechtsanwalt in einer international ausgerichteten Wirtschaftskanzlei im Bereich Gesellschaftsrecht / M&A. Thomas Böhm is a German corporate lawyer. During his law studies at the University of Passau, he specialized in the fields of corporate law, securities and capital markets law as well as international private and procedural law. After successfully completing his legal clerkship at the Higher Regional Court of Nuremberg, he worked for several years as a corporate lawyer in a major international law firm. His practice focused on advising national and international investors, funds and companies on real estate transactions, mergers & acquisitions and commercial tenancy law. Thomas Böhm graduated with a Master of Laws (LL.M.) degree in corporate law at the University of Edinburgh. He focused on UK company law, corporation law and economics, corporate governance, European labour law and international trade law. Currently Thomas Böhm works as a corporate lawyer in an internationally oriented commercial law firm in the field of corporate law / M&A.