Circumventing the lawMinority shareholders of a public company who may not agree to the entry of new investors into the company are given a chance to exit the firm via what is known as the mandatory tender offer. A tender offer refers to a publicly announced intention by a person acting alone or in concert with other persons to acquire outstanding equity securities of a public company. And this includes an associate or related company of such public company which controls the said public company. Just recently, the SEC had the occasion to put its foot down once again against attempts to circumvent this mandatory tender offer requirement. It stressed that any person who circumvents the law, direct or otherwise, shall not be allowed to benefit from the same.
