What is the primary purpose of the Takeover Code?

The primary purpose of the Takeover Code is to ensure that shareholders are treated fairly during takeover bids. This regulatory framework is designed to provide a level playing field, safeguard the interests of shareholders, and promote transparency in the acquisition process. By requiring that any party proposing to take over a company must make a clear offer to all shareholders, the Code helps to prevent any unfair advantages that might arise from asymmetrical information or aggressive tactics. It aims to maintain fairness and equity in corporate control transactions, thereby enhancing confidence in the market and protecting investors’ rights as they navigate potential changes in ownership.

Options that speak to regulating interest rates, maintaining national security, or protecting consumer rights, while important in their own contexts, do not address the specific focus and functions of the Takeover Code, which is solely concerned with the dynamics and fairness of corporate takeover activities.