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Stock repurchase as a defense against hostile takeovers

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  • Stock repurchase as a defense against hostile takeovers
  • Kang, Hee Jeu
  • Seoul National University(BK 21 Law)


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Title Stock repurchase as a defense against hostile takeovers
Similar Titles
Material Type Articles
Author(English)

Kang, Hee Jeu

Publisher

[Seoul]:Seoul National University(BK 21 Law)

Date 2008
Journal Title; Vol./Issue Journal of Korean Law:vol. 8(no. 2)
Pages 15
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Government and Law < Laws and Legislation
Holding Seoul National University

Abstract

The board of directors has the authority to decide on the sale of the company’s own stocks, and the board of directors’ decision to duly dispose of the company’s own stocks that have been legitimately acquired should, in principle, be deemed lawful. Even when the company sells its own shares for the defense of the management right, the legality of such sale should be determined considering the reasonable basis and proportionality of the defensive action. If the decision to sell the company’s own shares to its shareholders or to third parties is subject to the business judgment of the board of directors, the legality of such sale should be determined in accordance with the same principle. The board of directors’ decision to sell the company shares should thus be determined in accordance with the principle of reasonable basis and the principle of proportionality. (The rest omitted)