Which of the following statements is correct with respect to state efforts to offer protection to companies targeted for hostile takeovers?
A)Courts offer the only legal protection to companies targeted for hostile takeovers.
B)Statutory law offers the only legal protection to companies.
C)Both statutory law and the state courts have provided some degree of protection for companies.
D)State courts and state statutes have offered no protection for companies targeted for hostile takeovers.

Question

Quizplus · Accepted Answer

Both state statutes and state courts have provided some degree of protection for companies targeted for hostile takeovers. For example, some states have laws that allow companies to adopt anti-takeover measures such as poison pills and staggered boards, which make it more difficult for hostile bidders to gain control of the company. State courts have also been known to intervene in takeovers that they deem to be unfair or manipulative, although the extent of their protection varies by state.

Which of the Following Statements Is Correct with Respect to State