Define: Corporate Raider

A corporate raider is an individual or entity that acquires a significant amount of shares in a company with the intention of gaining control over its operations and assets.

Corporate raiding itself is not illegal, as it involves the purchase of shares in the open market. However, certain tactics employed by corporate raiders, such as insider trading or market manipulation, may be illegal.

Corporate raiders often employ strategies such as hostile takeovers, proxy fights, leveraged buyouts, and asset stripping to gain control over a targeted company.

If a corporate raider engages in illegal activities or violates securities laws during the acquisition process, they can be held liable and may face legal consequences.

Yes, companies have various defence mechanisms to protect themselves against corporate raiders, such as implementing poison pills, adopting staggered boards, or seeking white knight investors.

In certain circumstances, if a corporate raider’s actions are deemed detrimental to the company or its shareholders, a court may order the raider to divest their shares.

Corporate raiding is subject to various regulations and laws, including securities laws, antitrust laws, and regulations imposed by stock exchanges.

If a corporate raider’s actions are deemed to be against the best interests of the company or its shareholders, the company may seek legal remedies, such as injunctions or court orders, to prevent the acquisition.

While corporate raiders may be responsible for restructuring or downsizing a company, they are not typically held legally responsible for job losses or company closures, as these decisions are often made by the company’s management.

The success of a corporate raider’s takeover attempt depends on various factors, including the company’s defences, shareholder support, and the raider’s financial resources. While some attempts are successful, others may fail due to legal obstacles or resistance from the target company.