Blawsis standards are judicial decisions that a method that interferes with the exercise of voting rights by an acquirer is not permitted because it will encourage management’s maintenance. Especially in the United States this standard is used, it is one of the judicial judgments in the United States. This blawsis standard is a standard set to guarantee the right of the acquiring party. In today’s economic environment, the case where companies acquire other companies through M & A is done on a daily basis. The acquired company can take takeover defense measures of course. Since various takeover defense measures are now known, the acquired company will consider various defensive measures according to the current situation. Ultimately, a decision is made by the general shareholders’ meeting, which has become a high decision-making body, the direction is narrowed down to one, and the decision is usually the most binding. In the case where a resolution is taken that the acquired company excessively interferes with the measures of the acquiring company in the regular acquisition process by applying this blawsis standard, the resolution is only to be held by the manager of the acquired company. It is judged not to act and the resolution is not approved by judicial judgment.
The blawsis standards are becoming tighter
The blawsis standards will function as guaranteeing the right of a valid acquisition process. Basically, since there are many favorable acquisitions that are carried out smoothly on an agreement basis, in such a situation, it may not be necessary to consider the blawsis standards much. Sometimes, friendship relations become hostile relations and hostile takeover may be done. In such a case, the manager of the side which is normally expected to be expected is trying to figure out the countermeasure in some way in order to stop the situation. However, due to the existence of blawsis standards, measures that interfere with regular takeover measures are no longer allowed. This blawsis standard has been tightened and hostile takeovers have progressed quickly.