A critique of shareholder primacy under UK takeover law and the continued imposition of the Board Neutrality Rule. Issue 4 (13th July 2015)

• Record Type: Journal Article
• Authors: Nyombi, Chrispas
• Is Part Of: International journal of law and management. Volume 57:Issue 4(2015)
• Page Start: 235
• Page End: 264
• Publication Date: 2015-07-13
• Subjects: Companies act 2006 -- Board neutrality rule -- Cadbury -- Rule 21 -- Takeover -- Takeover code 2006; Labor laws and legislation -- Great Britain -- Periodicals; Trade regulation -- Great Britain -- Periodicals; Labor laws and legislation -- Great Britain -- Cases; Trade regulation -- Great Britain -- Cases; 346.0664
• DOI: 10.1108/IJLMA-12-2012-0042
• Languages: English
• ISSNs: 1754-243X

Abstract

Abstract : Purpose: – The purpose of this paper is to determine whether the Board Neutrality Rule and the primacy afforded to shareholders during takeovers is justified under common law and policy. Design/methodology/approach: – The paper provides a detailed assessment of the role play by the board neutrality rule and whether this is supported by takeover law and Company law. A review of case law and statutes is provided. The paper is largely analytical. Findings: – The paper finds little justification for the continued imposition of the Board Neutrality Rule. Originality/value: – The paper adds to the growing body of research literature which has analysed the role played by the Board Neutrality Rule during takeovers.