Which of the Following Is True About the Williams Act

question 63

Multiple Choice

Which of the following is true about the Williams Act?

• A)It regulates tender offers only when the bidder intends to hold at least 2 percent of the subject company's shares.
• B)It requires bidders to solicit shares from at least 100 shareholders.
• C)It does not permit tendering shareholders to withdraw their tendered shares.
• D)The aim of the Williams Act is to protect investors and to give the bidder and the subject company equal opportunities to present their cases to the shareholder.

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Definitions:

Director Liability

The legal responsibility of corporate directors for actions or omissions that cause harm to the company or its shareholders.

Unlawful Distributions

Financial distributions made by a company to its shareholders that violate laws or the company's own regulations, potentially harming the company or its creditors.

Usurped Corporate Opportunity

An act where an individual takes advantage of an opportunity that rightfully belongs to a corporation, typically violating fiduciary duties.

Director Liability

The legal responsibility of a company's directors to act in the best interest of the company, with potential personal legal consequences for breaches of duty.