Williams Act

Williams Act

Federal legislation enacted in 1968 (and now constituting Rules 13d and 14d of the Security Exchange Act of 1934) that imposes requirements with respect to public tender offers.

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Williams Act

Legislation in the United States, enacted in 1968, requiring persons or companies who own or make a tender offer for more than 5% of the common stock of a publicly-traded company to register with the SEC. The information contained in the registration includes the person or company's intentions, the terms of a tender offer, and how the person or company is paying for it. The Williams Act is designed to increase transparency in the market, especially in the event of a hostile takeover. The SEC enforced the Williams Act through Rule 13d and Rule 14d.

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Williams Act

A 1968 addition to the Securities Exchange Act of 1934 that requires investors who own or tender more than 5% of a firm's stock to furnish certain information to the SEC. The act also established a minimum period during which a tender offer must be held open. Required information includes the reason for the acquisition, the number of shares owned, and the source of the funds used for the purchase.