Fiduciary Duties in Takeovers: UK & India Laws - A Comparison

Abstract:     
One of the chief components of a country's economic growth consists of development of the capital markets. They provide strategies for growth, diversification, channelling surplus funds, and provide an alternative to bank and institutional finance. Mergers and Acquisitions (and takeovers) are one of the key components of the capital markets and the regulation and control of the same is a strategic policy decision having a direct bearing on the economic growth of the country. Efficiently functioning legal framework complements this objective and help corporations to seek opportunities for growth by way of reorganizations. This paper analyzes the laws regulating the fiduciary duties of directors and managers of a company at the time of a takeover. Prevalent laws of the United Kingdom and India are studied for a comparative view of the more effective of the two.

Number of Pages in PDF File: 28

Keywords: Fiduciary duty, takeover, corporate governance, India, UK, takeover code, SEBI

working papers series