A Comparative Study of the Effects of Takeover on Directors and Shareholders in England and Iranian Law

Document Type : Scientific research

Authors

• Mohamad Hassan Badinloo
• Habib Ramezani Akerdi
• Seyed Elhamoddin Sharifi

Department of Law, Faculty of Social Sciences, Imam Khomeini International University (IKIU), Qazvin, Iran

10.22067/economlaw.2023.76649.1181

Abstract

 Despite the fact that Takeover is usually used as a common strategy for the growth and development of companies, this process has unavoidable effects. Explaining that Takeover actually affects the set of actors of the companies and in many cases, it does not lead to the expected benefits. One of the reasons for this is the nature of Takeover, which, unlike other similar legal entities such as Mergers, is mostly hostile and against the will of the Target Company.
In this research, the question is addressed by analytical-descriptive method and with a comparative study, what effect does Takeover have on the company's shareholders and managers?
According to the findings of the current research, the interests of managers are secured without the existence of special regulations in the field of Takeover; however, in the absence of protective regulations, the interests of shareholders may not be secured in the Takeover process. This fact is especially important in Iranian law; because most of the existing laws are in the legislative field of the Merger and regarding Takeover, the legislator has expressed the limited rules related to this field in a scattered and decentralized manner without mentioning its name.

Keywords

• Takeover
• Takeover Effects
• Company Shareholders
• Company Managers
• Company Employees

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