Compulsory Takeover Law
Hey guys, im a new monkey
just got a quick question regarding the percentage of shares required to be held in a company for that shareholder to force a compulsory acquisition of the remaining shares
thanks in advance
why would you ask that question here? Call up the stock exchange where the company is listed and ask them. They don't bite y'know.
Generally, if you have a majority (50%+) you can make a tender offer for all outstanding shares, call a shareholder vote on whether to accept the offer, and win the vote. If you have a minority stake, you can do it in two stages: first make an offer and hope you get 50%, and then do a second offer combined with vote.
This is subject to certain federal laws, and the laws in the state where the company is incorporated. Has nothing to do with which stock exchange you're listed on.
An important caveat -- "Poison pill" defenses generally prohibit you from owning more than say 10-15% of the company without the board of director's approval. Poison pills are part of the company's own governance structure, so that part varies by company. The point is, it's not very easy to run around making hostile offers for majority stakes in companies, unless you bring the board...er....on board.
It's much more complicated, obviously, but I'll leave it there.
In the UK and for companies listed or incorporated in Singapore (and HK i think), its 90%. Once you have that, you can attempt what is sometimes called a cram down by requesting a Court in the relevant jurisdiction to order the holder of the remaining 10% to sell to you at the relevant offer price.
The holder of the 10% could still mount a 'fraud on the minority' defense though.
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