Violation of Minority Shareholder Rights. Analysis on the Mandatory Takeover Bid
Violation of Minority Shareholder Rights. Analysis on the Mandatory Takeover Bid

Author(s): Marius Cristian Miloş, Laura Raisa Miloş
Subject(s): Law on Economics, Commercial Law
Published by: Societatea de Stiinte Juridice si Administrative
Keywords: minority shareholder protection; European Union; mandatory takeover bid; stock market;
Summary/Abstract: The mandatory takeover bid is seen by the legislator as a way of protection of minority shareholders, by making the intention of the shareholder who exceeds a certain holding threshold and wishes to take control of the company more transparent, makingin this way possible for the minority shareholders to exit the company, if this is seen as appropriate, and not remaining trapped in a company where they could no longer exerciseany influence. The objective of this paper is realizing a comparative analysis at the European level regarding the mandatory takeover bid, by outlining the legal provisions that apply, the similarities and differences between the EU member states. Not in theleast, on the basis of the Romanian jurisprudence, that is related with mandatory takeover bids, there are being questioned the pronounced sentences. According to the comparative study, we can observe the existence in the European national law (including Romania) of the provision regarding the mandatory takeover bid that has positive consequences from a legally point of view, by ensuring the protection of minority shareholders, contributing to the overall growth of the European stock markets.

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