safe harbor

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Safe harbor

Often used in risk arbitrage as a form of shark repellent. A target company acquires a business so onerously regulated that it makes the target less attractive, giving it, in effect, a safe harbor.

Safe Harbor

1. An anti-takeover measure in which a potential target company buys a subsidiary in an industry that is so strictly regulated that it makes acquiring the target company difficult and/or expensive.

2. Legal protection from a lawsuit. Regulators often apply safe harbor to some corporate actions as long as those actions are taken in good faith.

safe harbor

1. A regulation that protects individuals or corporations from the legal consequences of certain actions they undertake. For example, firms filing forecasts with the SEC have a safe harbor from individuals or businesses that use the forecasts and are subsequently damaged (that is, they lose money), as long as the forecasts were prepared in good faith.
2. A tactic in which the target of an unfriendly takeover makes itself less attractive by taking a specific action.

safe harbor

A system of rules that, if followed exactly, will provide protection from the effects of other laws. For example, in a 1031 like-kind exchange, the use of a qualified intermediary and compliance with strict IRS deadlines will result in the ability to avoid paying taxes at the time of a sale.This is the safe harbor from normal tax liability rules.There are other ways to complete a like-kind exchange without paying taxes,but the seller embarks upon those uncharted waters at its own peril. A very slight miscalculation could result in the imposition of large taxes, penalties, and interest at a later date.

References in periodicals archive ?
The DMA Safe Harbour Program Committee will enforce privacy guidelines against U.
In addition, cases not resolved through The DMA's Safe Harbour Enforcement Program can be referred to the U.
The DMA has also established a SafeHarbour Line as a free consumer service as part of its Safe Harbour Enforcement Program.
safe harbour principles require that privacy complaints be initially addressed by the offending company's customer service department or other in-house complaint resolution program.
The DMA Safe Harbour Enforcement Program and its SafeHarbour Line are assurances to European consumers that U.
and industry representatives -- including The DMA -- developed the seven safe harbour principles (listed below).
Summary of the Principles of Safe Harbour Data Transfer Agreement
The seventh principle requires subscribing to a third-party dispute resolution mechanism like The DMA's Safe Harbour Enforcement Program.