Jump to ContentJump to Main Navigation
Show Summary Details
More options …

European Company and Financial Law Review

Ed. by Bergmann, Alfred / Drescher, Ingo / Fleischer, Holger / Goette, Wulf / Harbarth, Stephan / Hommelhoff, Peter / Krieger, Gerd / Merkt, Hanno / Teichmann, Christoph / Vetter, Jochen / Weller, Marc-Philippe / Wicke, Hartmut


CiteScore 2018: 0.22

SCImago Journal Rank (SJR) 2018: 0.262
Source Normalized Impact per Paper (SNIP) 2018: 0.159

Online
ISSN
1613-2556
See all formats and pricing
More options …
Volume 8, Issue 2

Issues

Minority shareholder protection in takeovers: A UK perspective

Jennifer Payne
Published Online: 2011-06-07 | DOI: https://doi.org/10.1515/ecfr.2011.145

This article examines the shareholder-centric model of takeover regulation in the UK, and explores two recent developments that potentially impact on this model. The first is the rise of schemes of arrangement as an alternative mechanism for effecting takeovers. Schemes have become the mechanism of choice for recommended bids in the UK, and yet they offer significantly less protection to minority shareholders than traditional bids. The justifications for this discrepancy are explored and it is suggested that the lower level of minority protection is explicable, and acceptable, once the different reasons for minority protection in a traditional bid and in a scheme are understood. The second development follows the successful takeover of Cadbury by Kraft in 2010, and comprises various suggestions for the reform of the UK takeover regime put forward by the Code Committee of the Takeover Panel. This article concentrates on a number of recommendations which, if accepted, would impact on the existing shareholder-centric nature of the UK model. In particular the position of non-shareholder stakeholders in a takeover is examined, as is the role of short term shareholders in the target, and the position of the bidder shareholders is also considered. The Code Committee's proposals in relation to these matters are assessed, but it is suggested that no reform of UK takeover law is required to deal with these issues at the present time.

About the article

Published Online: 2011-06-07

Published in Print: 2011-06-01


Citation Information: European Company and Financial Law Review, Volume 8, Issue 2, Pages 145–173, ISSN (Online) 1613-2556, ISSN (Print) 1613-2548, DOI: https://doi.org/10.1515/ecfr.2011.145.

Export Citation

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
Afra Afsharipour
SSRN Electronic Journal , 2016
[2]
Hang Li and Dan Zhou
The European Journal of Finance, 2019, Volume 25, Number 15, Page 1440
[3]
Christian Alexander Mecklenburg-Guzmán
Journal of Banking Regulation, 2013, Volume 14, Number 1, Page 61

Comments (0)

Please log in or register to comment.
Log in