Boards' Governance of Hostile Takeovers in the US and the UK

Abstract

It is argued heatedly whether the governance of the board in a company against hostile takeovers is of necessity in the United States and in the United Kingdoms. This study aims to determine whether this intervention of boards should be legitimatized according to laws in these two countries in order to gain a better legal environment for the market. Literature research method had been used in this paper and conclusions were analyzed to reach the aim. The result in this study suggests that the effects of hostile takeovers on corporate governance are quite different owning to the different jurisdiction in the United States and in the United Kingdoms. Obvious as it is, corporate governance changes according to local legislations. The United States tends to have a more tolerate jurisdiction on whether the management of corporate should be entitled to intervene or block hostile takeovers. The United Kingdoms, on the contrary, tends to be more disciplined in administration for the board in a company issued on this type of governance.