The Divergence of U.S. and UK Takeover Regulation Essay

The Divergence of U.S. and UK Takeover Regulation - Essay Example In the article, there is a big difference in takeover regulation of companies in UK and US. The law of Delaware in the United States provides a peaceful condition in which the ruling board is given the mandate in the decision making of the type of tender to be issued. On the other side, United Kingdom uses a defensive tactic by targeting the ruling board. This tactic prohibits the management from interacting with other management in a peaceful manner. However, during the takeover regulation in the US, the court usually decides over tender and offers the rules concerning it. On the contrary, UK lawyers disappears when the hostile bidders launches their bids. By the use of this tactic, the UK were able to private their regime through the institutional inventors of which their counterparts could not. Though both the American and English system of corporate governance has different features, they share ownership. The hostile tactic of takeover gives priority to function as a disciplinary instrument undertaken by the management. Nevertheless, both possess different rules and regulations governing the takeover battle. Finally, the difference in approach between US and UK is relevant as it provides education leading to enhancement of the economy of the entire