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The Non-Frustration Rule Of The Uk City Code On Takeover And Mergers And Related Agency Problems: What Are The Implications For The Ec Takeover Directive?, Han-Wei Liu

Research Collection Yong Pung How School Of Law

The Takeover Directive, first envisioned in the White Paper on completing the Internal Market, was finally adopted in 2004, after almost 20 years of work. The Takeover Directive is based upon the assumption that the takeover offers numerous benefits to companies, investors, and, ultimately, the European economy as a whole. The functions of a takeover include disciplining management, stimulating competition, and disseminating good management practice, thus improving the quality of management as well as corporate performance. While one of the major purposes of the Takeover Directive is to mitigate the agency problem in the takeover context, some mechanisms, such as …