Hostile takeovers as corporate governance: A legal analysis of tender offer and proxy contest in China and Malaysia

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

This paper will specifically analyse from a legal perspective the applicability of tender offer and proxy contest as the most frequently used techniques in hostile takeovers in China and Malaysia. The purpose is to evaluate the adequacy of the related regulation and governance in place for companies in both jurisdictions. This paper unfortunately found that both China and Malaysia have not particularly adopted tender offer technique since in practice most hostile takeover cases were completed through mandatory offers triggered by negotiated purchases. Likewise, the existing Chinese and Malaysian laws are not supportive enough to supervise proxy contest exercises. As a result, they are losing the advantages that both techniques may offer to enhance corporate governance and promote fair competition. Both jurisdictions should consider putting on adequate laws and practices to better regulate hostile takeovers.

Original languageEnglish
Pages (from-to)558-566
Number of pages9
JournalCorporate Ownership and Control
Volume11
Issue number4 Continued 6
Publication statusPublished - 1 Jun 2014

Fingerprint

Corporate governance
Tender offers
China
Hostile takeovers
Malaysia
Proxy contest
Jurisdiction
Purchase
Governance
Exercise
Adequacy

Keywords

  • China
  • Hostile takeover
  • Malaysia
  • Proxy contest
  • Tender offer

ASJC Scopus subject areas

  • Business, Management and Accounting(all)

Cite this

Hostile takeovers as corporate governance : A legal analysis of tender offer and proxy contest in China and Malaysia. / Mohd. Ali, Hasani.

In: Corporate Ownership and Control, Vol. 11, No. 4 Continued 6, 01.06.2014, p. 558-566.

Research output: Contribution to journalArticle

@article{ab7f4a2b8d4045fdba231d5dbfb5afaf,
title = "Hostile takeovers as corporate governance: A legal analysis of tender offer and proxy contest in China and Malaysia",
abstract = "This paper will specifically analyse from a legal perspective the applicability of tender offer and proxy contest as the most frequently used techniques in hostile takeovers in China and Malaysia. The purpose is to evaluate the adequacy of the related regulation and governance in place for companies in both jurisdictions. This paper unfortunately found that both China and Malaysia have not particularly adopted tender offer technique since in practice most hostile takeover cases were completed through mandatory offers triggered by negotiated purchases. Likewise, the existing Chinese and Malaysian laws are not supportive enough to supervise proxy contest exercises. As a result, they are losing the advantages that both techniques may offer to enhance corporate governance and promote fair competition. Both jurisdictions should consider putting on adequate laws and practices to better regulate hostile takeovers.",
keywords = "China, Hostile takeover, Malaysia, Proxy contest, Tender offer",
author = "{Mohd. Ali}, Hasani",
year = "2014",
month = "6",
day = "1",
language = "English",
volume = "11",
pages = "558--566",
journal = "Corporate Ownership and Control",
issn = "1727-9232",
publisher = "Virtus Interpress",
number = "4 Continued 6",

}

TY - JOUR

T1 - Hostile takeovers as corporate governance

T2 - A legal analysis of tender offer and proxy contest in China and Malaysia

AU - Mohd. Ali, Hasani

PY - 2014/6/1

Y1 - 2014/6/1

N2 - This paper will specifically analyse from a legal perspective the applicability of tender offer and proxy contest as the most frequently used techniques in hostile takeovers in China and Malaysia. The purpose is to evaluate the adequacy of the related regulation and governance in place for companies in both jurisdictions. This paper unfortunately found that both China and Malaysia have not particularly adopted tender offer technique since in practice most hostile takeover cases were completed through mandatory offers triggered by negotiated purchases. Likewise, the existing Chinese and Malaysian laws are not supportive enough to supervise proxy contest exercises. As a result, they are losing the advantages that both techniques may offer to enhance corporate governance and promote fair competition. Both jurisdictions should consider putting on adequate laws and practices to better regulate hostile takeovers.

AB - This paper will specifically analyse from a legal perspective the applicability of tender offer and proxy contest as the most frequently used techniques in hostile takeovers in China and Malaysia. The purpose is to evaluate the adequacy of the related regulation and governance in place for companies in both jurisdictions. This paper unfortunately found that both China and Malaysia have not particularly adopted tender offer technique since in practice most hostile takeover cases were completed through mandatory offers triggered by negotiated purchases. Likewise, the existing Chinese and Malaysian laws are not supportive enough to supervise proxy contest exercises. As a result, they are losing the advantages that both techniques may offer to enhance corporate governance and promote fair competition. Both jurisdictions should consider putting on adequate laws and practices to better regulate hostile takeovers.

KW - China

KW - Hostile takeover

KW - Malaysia

KW - Proxy contest

KW - Tender offer

UR - http://www.scopus.com/inward/record.url?scp=84909587588&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84909587588&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:84909587588

VL - 11

SP - 558

EP - 566

JO - Corporate Ownership and Control

JF - Corporate Ownership and Control

SN - 1727-9232

IS - 4 Continued 6

ER -