posted on 06-06-2019

Anti-Takeover Statute

Updated October 1, 2019

What is an Anti-Takeover Statute?

An anti-takeover statute is a law designed to deter companies from launching hostile takeovers of other companies.

How Does an Anti-Takeover Statute Work?

Anti-takeover statutes exist in some places in order to protect the autonomy and interests of companies incorporated in those states. Though their character differs from state to state, anti-takeover statutes either prohibit takeovers or set forth penalties against forcibly purchasing companies.

Why Does an Anti-Takeover Statute Matter?

Anti-takeover statutes are a double-edged sword. Although these statutes prevent the detrimental consequences of hostile takeovers, they can also inhibit mutually profitable merger opportunities between companies.


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Related Definitions

Takeover
A takeover is the purchase of a company. A takeover is different from a merger, which occurs when the purchaser and the target both cease to exist and instead... See More
Takeover
A takeover is the purchase of a company. A takeover is different from a merger, which occurs when the purchaser and the target both cease to exist and instead... See More
Takeover
A takeover is the purchase of a company. A takeover is different from a merger, which occurs when the purchaser and the target both cease to exist and instead... See More
Merger
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