oa De Rebus - The role of the Takeover Regulation Panel in protecting investors : feature

Volume 2015, Issue 550
  • ISSN : 0250-0329



This article briefly discusses the regulation of mergers and acquisitions in terms of the Companies Act 71 of 2008 (the Act). It is generally accepted that legal protection of the investing public in a country encourages development of financial markets. In countries that have well-functioning legal rules, outside investors are willing to invest by providing funding to firms and are willing to participate in financial markets. On the other hand, where investors are not protected the development of financial markets may be retarded. Shareholders and creditors feeling that their rights are protected are willing to pay more for financial assets including equity and debt, with the recognition that they will be repaid in the form of either dividend or interest rather than losing their investment to expropriation; investors may be willing to pay more. Share prices may increase. This in turn, may lead to investors putting more money in the financial markets and subsequent expansion of the financial markets.

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