Top Executive Education Searches. Some areas of economy require licenses and NOCs to collude. Boardrooms are dynamic places where heated discussions occur. Acquisition process is beneficial for the company going in loss. In your legal system, to whom do board members owe their duty of loyalty? The trust placed in directors gives them maximum autonomy in decision making, and decisions are not questioned unless they are deemed irrational.
At the initial stage, all corporate documents are thoroughly reviewed which include Articles of Association.
Mergers and Acquisitions: A Complete Guide
Minority shareholders are vulnerable when the controlling owner attempts to squeeze out the other shareholders, for example by buying, selling or leasing assets at non-market prices, as a way to shift corporate resources to the large owner. Some countries have foreign capital investment laws, which prevent foreign companies from investing locally or set a certain investment limit. Being loyal to shareholders is, in any case, easier said than done. The ties with various stakeholder groups potentially create divided loyalties for directors. Big firms find themselves in spotlight when it comes to labor laws. There are a lot of parties who might be affected by a merger or an acquisition, like government agencies, workers and managers.