Federal regulations prohibit the management of target companies from using corporate funds to educate shareholders on the disadvantages of a takeover.

Question

Quizplus · Accepted Answer

Federal regulations do not prohibit the management of target companies from using corporate funds to educate shareholders on the disadvantages of a takeover. In fact, management often engages in such activities to fend off hostile takeovers, as part of their fiduciary duties to protect the interests of the shareholders.

Federal Regulations Prohibit the Management of Target Companies from Using