Takeover control under the Trade Practices Act: Towards a more efficient and competitive corporate Australia

Mayanja, James (1998) Takeover control under the Trade Practices Act: Towards a more efficient and competitive corporate Australia. Trade Practices Law Journal, 6 (1). pp. 33-45. ISSN 1039-3277

Abstract

By not recognising efficiency gains from takeover transactions as public benefits, unless those gains are passed on to consumers, the present authorisation procedure acts as a potential disincentive to takeover activity. This is undesirable. A reduction in social welfare is likely to occur if parties desist from engaging in what would otherwise be beneficial (efficiency enhancing) takeover activity. In order to promote the welfare of society to the fullest extent possible, the law should be reformed to recognise as public benefits gains in efficiency generated by a takeover, even if the those benefits are not immediately passed on to consumers.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty / Department / School: Historic - Faculty of Business - Department of Law
Date Deposited: 30 Nov 2007 11:47
Last Modified: 04 Nov 2013 02:17
Fields of Research : 18 Law and Legal Studies > 1801 Law > 180109 Corporations and Associations Law
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150304 Entrepreneurship
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150312 Organisational Planning and Management
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9102 Microeconomics > 910206 Market-Based Mechanisms
URI: http://eprints.usq.edu.au/id/eprint/13635

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