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.