What does business combination statute mean?

business combination statute meaning in Law Dictionary

These legislation enforce a moratorium on specific kinds of transactions (e.g., asset sales, mergers) between a big shareholder additionally the company for a period typically varying between three and 5 years following the shareholder's risk passes a pre-specified (minority) threshold. These guidelines have been in devote more than half the U.S. States.

business combination statute meaning in Business Dictionary

Anti-takeover legislation that generally speaking needs prior endorsement associated with the board of a strong regarding the sale of shares (that surpass a certain percentage of this firm's outstanding stocks) by a shareholder to another entity.