Protecting Societal Interests in Corporate Takeovers: A Comparative Analysis of the Regulatory Framework in the U.K., Germany and China

Description

The book explores “what are the societal interests that may be affected by a takeover, are these protected under the current regulatory frameworks of the U.K., Germany, and China, (and if so) how are they protected and what recommendations can be made for future reforms in the three jurisdictions?” The book adopts three main methods: law and economics analysis, doctrinal legal research, and comparative analysis. The content of this book is intended not only for the academia; it may also benefit the policy makers by providing an evaluation on the strengths and weaknesses of different protection mechanisms and recommendations for future reforms. Besides, companies which are (potentially) interested in conducting takeovers in the three countries may also find this book useful with its overall analysis of the regulatory frameworks and representative takeover cases in the jurisdictions. Acknowledgements Abbreviations Regulations and Self-Regulatory Rules Of the EU Of the U.K. Of Germany Of China Institutions Of the EU Of the U.K. Of Germany Of China Others Contents About the Author List of Figures List of Tables 1 Introduction 1.1 Introduction 1.2 Clarification of Critical Concepts 1.2.1 “Takeovers” 1.2.2 “Stakeholders” and “Relevant Societal Interests” 1.2.3 “Regulatory Framework of Takeovers”, “Government Regulation”, “Private Regulation” 1.3 Research Questions and Structure 1.3.1 Research Questions 1.3.2 Research Structure 1.4 Methodology 1.4.1 Doctrinal Legal Research 1.4.2 Comparative Research 1.4.3 Law and Economics Analysis 1.5 Impact Statement 2 Market Failures in Takeovers 2.1 Introduction 2.2 Market Inefficiencies in Takeovers 2.2.1 Market Failure Theory 2.2.2 Market Failures in Takeovers 2.3 The Role of Government Regulation and Private Regulation in Solving Market Failures 2.3.1 The Public Interest Approach and Private Interest Approach of Government Regulation and Private Regulation 2.3.2 Government Regulation and Private Regulation for Takeovers 2.4 Conclusion 3 The Regulatory Framework of the U.K. 3.1 Introduction 3.2 Competition Law—Enterprise Act 2002 3.2.1 Background to the Public Interest Protection 3.2.2 Protection of the Public Interest in a Relevant Merger Situation 3.2.3 Protection of the Public Interest in a European Relevant Merger Situation and a Special Merger Situation 3.2.4 Analysis of Cases with a Public Interest Intervention 3.2.5 Intermediate Conclusion 3.3 Regulations in the FDI Screening Regime 3.3.1 The FDI Screening Regime Before 2020 3.3.2 The New FDI Screening Regime Introduced by the U.K. Security Act 2021 3.3.3 Intermediate Conclusion 3.4 Takeover Law, Corporate Law and Self-Regulatory Corporate Governance Code 3.4.1 Background 3.4.2 Protection of the Shareholders 3.4.3 Protection of Other Stakeholders 3.4.4 Intermediate Conclusion 3.5 Conclusion 4 The Regulatory Framework of Germany 4.1 Introduction 4.2 Competition Law—The Act Against Restraints of Competition 4.2.1 Background to the “Public Interest Exemption” Mechanism: The Recognized Public Interest Considerations and Relevant Procedure 4.2.2 Analysis of Previous Ministerial Authorization Decisions 4.3 Regulations in the FDI Screening Regime 4.3.1 FDI Screening Regulation Before 2020 4.3.2 FDI Screening Regulation After 2020 4.4 Takeover Law, Corporate Law and Self-Regulatory Corporate Governance Code 4.4.1 Background 4.4.2 Protection of the Shareholders and Employees 4.4.3 Protection of Other Stakeholders 4.4.4 Intermediate Conclusion 4.5 Conclusion 5 The Regulatory Framework of China 5.1 Introduction 5.2 Competition Law—The Anti-Monopoly Law 5.2.1 Background to the Public Interest Protection Mechanism 5.2.2 Protection of the Competition Interest and Non-competition Public Interest Under the AML 5.2.3 Analysis of Previous Cases Under the AML 5.2.4 Intermediate Conclusion 5.3 Regulations in the FDI Screening Regime 5.3.1 Background and Recent Reforms 5.3.2 Regulation on Market Access for Foreign Investments 5.3.3 The National Security Review of Foreign Investments 5.3.4 Other Rules for Protecting the Relevant Societal Interests in the FDI Screening Regime 5.3.5 Intermediate Conclusion 5.4 Takeover Law, Corporate Law and Corporate Governance Code 5.4.1 Background 5.4.2 Protection of the Shareholders 5.4.3 Protection of Other Stakeholders 5.4.4 Regulation on Relevant Societal Interests in SOE-Related Takeovers 5.4.5 Intermediate Conclusion 5.5 Conclusion 6 Comparison and Evaluation of the Regulatory Frameworks of the U.K., Germany and China 6.1 Introduction 6.2 Comparison of the Protection Mechanisms 6.2.1 Introduction 6.2.2 Protection Mechanisms for the Legally Recognized Public Interest Considerations 6.2.3 Protection Mechanisms for the Interests of Corporate Stakeholders and Other Societal Interests 6.3 Evaluation of the Protection Mechanisms 6.3.1 Review of the Protection Mechanisms: What Market Failures Do They Solve? 6.3.2 Strengths and Weaknesses of the Protection Mechanisms 6.4 Conclusion 7 Conclusion and Recommendations 7.1 Introduction 7.2 Answers to the Research Questions 7.3 Recommendations for Future Reforms 7.4 Limitations of the Research Summary Bibliography