Business Combination laws

(redirected from Business Combination Law)

Business Combination laws

These laws impose a moratorium on certain kinds of transactions (e.g., asset sales, mergers) between a large shareholder and the firm for a period usually ranging between three and five years after the shareholder's stake passes a pre-specified (minority) threshold. These laws are in place in more than half the U.S. states.

Business Combination Laws

Laws in most U.S. states limiting the transactions between publicly-traded companies and their most prominent minority shareholders. Generally speaking, a company may not merge or conduct other major transactions with a company owned by a minority shareholder for a certain number of years after the minority shareholder takes on a certain, defined percentage of the company's equity.
References in periodicals archive ?
Such action by RAH has triggered the defensive provisions of Nevada's Business Combination Law and Riviera's articles of incorporation applicable to "substantial stockholders.
In light of the attractive terms of our offer, we request that the Company's Board of Directors take appropriate actions so that the Iowa Business Combination Law is rendered inapplicable to our proposed merger.
Along with the expiration of the negotiating agreement, approvals and waivers that Riviera's board of directors had granted under Riviera's articles of incorporation and Nevada's business combination law to enable Mr.
Western's proposal must satisfy the Missouri Business Combination law, which requires your board's approval.
In addition, Riviera's board of directors has adopted resolutions, under the defensive provisions of Riviera's articles of incorporation and Nevada's business combination law, enabling Eichner and members of the D.
In the light of the attractive terms of our offer, we request that US Shoe's Board of Directors make appropriate determinations so that the preference shares purchase rights and the restrictions provided in the Ohio Business Combination Law are rendered inapplicable to our offer and the proposed merger.
The lawsuit, filed in Nevada state court in Reno, seeks a declaratory judgment that the Nevada Business Combination Law, which prohibits certain types of transactions between an acquiror and a Nevada corporation that have not been approved by its board of directors, will be upheld as valid.
Full browser ?