Corporate Governance
Intermediate
Market for Corporate Control
A market in which control over corporate assets can shift through takeovers, mergers, proxy contests, or other control transactions.
Why It Matters
The concept explains why takeover law, defensive tactics, tender-offer rules, and voting rights can operate as external checks on managerial performance.
Selected Literature
A short list of directly relevant archive entries.
1965
Intermediate
1980
Advanced
Takeover Bids, the Free-Rider Problem, and the Theory of the Corporation
Sanford J. Grossman and Oliver D. Hart
Bell Journal of Economics
1981
Intermediate
2007
Advanced
Hedge Funds in Corporate Governance and Corporate Control
Marcel Kahan and Edward B. Rock
University of Pennsylvania Law Review
Related Cases
1985
Corporate Law
Moran v. Household International, Inc.
500 A.2d 1346 (Del. 1985)
Validity of the shareholder rights plan as an antitakeover device.
1988
Corporate Law
Blasius Industries, Inc. v. Atlas Corp.
564 A.2d 651 (Del. Ch. 1988)
Board action taken for the primary purpose of interfering with shareholder voting power.
1994
Corporate Law
Paramount Communications Inc. v. QVC Network Inc.
637 A.2d 34 (Del. 1994)
Revlon duties, sale of control, and board conduct when a transaction shifts control from dispersed shareholders to a controlling block.