What's a Standstill Agreements?
The Term Standstill Agreement Refers to Various Forms of Agreement Which Businesses May Enter into in Order to Delay Action Which Might Otherwise Take Place...
The term standstill agreement refers to various forms of agreement which businesses may enter into in order to delay action which might otherwise take place.
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.
How does a standstill agreement work?
Parties to a dispute may choose to enter into a standstill agreement where they are approaching the expiry of the limitation period, but the claimant is not yet ready to issue its claim (because, for example, the parties are in negotiations which, if successful, would prevent a claim from needing to be issued at all).
Maya is a hardware enthusiast who tests and reviews smart home devices, smartphones, wearables, and audio gear. She focuses on practical consumer value and build quality.
