Research On Legal Issues Of Corporation Anti-acquisition

The fundamental goal of the anti-acquisition measures is to take precautions of or to repulse the hostile purchaser, to protect the long-term interests of the corporation and the shareholders as well as the benefits of the society. The management of the Target Corporation should not abuse the measures in order to strengthen their positions thus hamper the efficiency of the operation of the company and hinder the optimization regrouping of the resources while taking these measures. Both the practice of legislation and the judicial practice of the anti-acquisition should obey this principle.This paper mainly discusses the anti-acquisition of the corporation. After summarizing the recently published research papers on this issue, the author discusses the major problems generated by the anti-acquisition and proposes some advice according to the situation in our country.There are four chapters besides the introduction.Chapter One : The legal concept of the anti-acquisition.The author studies the marketing concept of the commanding power of the company involving the anti-acquisition and the concept of the power belongings of the anti-acquisition. The author believes that the theory of the social responsibilities of the company extend the limitation of the anti-acquisition measures taken by the management of the target corporation. It should be pointed out that whether the management of the target corporation takes a positive or a negative role in the defending should not be lumped together. A balance between the freedom and the necessary limitation should be achieved during the legislation of the corporation law, that is, while protecting the legal defending, we should prevent the abuse of the defending measures thus ensure the legal interests of the target corporation, the purchaser and other related parts.Chapter Two : The legal issue of the defending strategies of anti-acquisitionThe defending strategies of anti-acquisition are taken by the target corporation before the purchasing begins, thus protect the company from being a target. The author legally analyses the most important five anti-acquisition strategies including Shark Repellent, Poison Pill, Gold Parachute, Tin Parachute and Employee Stock Ownership Plans. The author also analyses the feasibility of the practice of these strategies in our country.Chapter Three : The legal issue of the confronting strategies of anti-acquisitionThe confronting strategies of anti-acquisition are taken by the target corporation when the purchaser has begun their purchasing act. The author analyses the most important five anti-acquisition strategies on a legal basis, including Issuing of the new stocks, Stock Repurchases, White Knight, Pac-Man Defense and Litigation. The author also analyses the feasibility of the practice of these strategies in our country.Chapter Four: ConclusionsThe author holds that the legislation of corporation law should protect the legal rights of the management of the target corporation in anti-acquisition, at the same time, the abuse of the anti-acquisition measures by the target corporation should be confined within necessary limits.