What is the purpose of a standstill agreement?

What is the purpose of a standstill agreement?

A standstill agreement is a contract that contains provisions that govern how a bidder of a company can purchase, dispose of, or vote stock of the target company. A standstill agreement can effectively stall or stop the process of a hostile takeover if the parties cannot negotiate a friendly deal.

What do you mean by standstill agreement?

A standstill agreement refers to a contract that contains provisions that direct how a bidder of a company can buy or sell a stock of the target company. It can effectively delay or stop the process of a hostile takeover if the parties cannot settle a friendly deal.

Is a standstill agreement a contract?

A standstill agreement is a contract and subject to the same rules as other contracts. Although the recent cases concern disputes about the terms of the particular standstill agreements, problems can also arise at the point of contract formation.

What is a standstill agreement limitation?

When the expiry of a limitation period is approaching on a prospective claim, standstill agreements “stop the clock” for limitation purposes. A standstill agreement prevents a party from issuing proceedings during the currency of that agreement.

What is a HMRC standstill agreement?

A Standstill Agreement is essentially a contract between two parties agreeing that time stops for the purposes of limitation for the period set out in the agreement. This is beneficial to HMRC, with the only potential benefit to taxpayers being the avoidance of Court fees on top of any potential tax liability.

What is standstill agreement Kashmir?

A standstill agreement was an agreement signed between the newly independent dominions of India and Pakistan and the princely states of the British Indian Empire prior to their integration in the new dominions. The form of the agreement was bilateral between a dominion and a princely state.

How long is standstill period?

The Standstill Period provides for a short (at least a 10 calendar day) pause between the point when the contract award decision is notified to bidders, and the final contract conclusion.

What is standstill in procurement?

The standstill period provides for a short (at least 10 calendar day) pause between the point when the contract award decision is notified to bidders, and the final contract conclusion, during which time suppliers can challenge the decision. It is a legal requirement imposed through the remedies directives.

What is a standstill agreement in a restructuring?

In a restructuring of a company’s debts, it is an agreement between creditors and the debtor company whereby the participating creditors agree not to take action to collect or enforce their debts for a period of time in which information can be collected and a survival strategy formulated with a view to implementing a formal restructuring.

When to use a standstill agreement in a loan?

A standstill agreement can also exist between a lender and borrower when the lender stops demanding a scheduled payment of interest or principal on a loan in order to give the borrower time to restructure its liabilities. A standstill agreement is a form of anti-takeover measure.

How is a standstill agreement used in a takeover?

In a takeover situation, it is an agreement between a company and a shareholder which restricts the shareholder’s ability to acquire further shares in the company.