Standstill Agreement Australia

A «deadlock» is a contractual obligation for the potential acquirer not to purchase shares in the target company for a certain period of time, unless the board of directors of the target company agrees. Indeed, the agreement stipulates that if the potential acquirer, after having had the opportunity to verify the confidential information of the target company, decides not to make an offer on terms acceptable to the board of directors of the target company, the potential acquirer is effectively excluded from the acquisition of other shares in the target company for a certain period of time. However, if a standstill agreement is considered the most appropriate option, efforts should be made to ensure that the parties explicitly agree on the intended effect of the judgment (i.e. whether it suspends or extends the time limit for the purposes of the limitation period) and that the text of the standstill agreement clearly and consistently reflects that intention. A standstill agreement is an agreement between the company and its creditors that limits creditors` enforcement actions (see above: standstill agreement). However, the standstill period should be negotiated according to the nature of the information provided as part of that information in order to be economically viable. It is reasonable for the parties to agree on a fixed shutdown date in order to ensure the commercial security of their contractual agreements, but the duration of the immobilisation must be proportionate to the importance of the information to be provided. Often, parties enter into standstill agreements when they approach the expiry of a limitation period. This case shows the difference between the period of suspension and the extension of the time for the purpose of prescription in a standstill agreement. As regards interpretation, the Tribunal found that the standstill agreement had a suspension of the time limit, which meant that the remainder of the limitation period continued after the expiry of the standstill agreement. .