A company pressured by an aggressive bidder or activist investor believes that a standstill agreement is useful in weakening the unsolicited approach. The deal gives the target company greater control over the deal process, by imposing on the offeror or investor the ability to buy or sell the company`s shares or launch proxy competitions. Glencore plc, a Swiss-based commodity trader, and Bunge Ltd., a US agricultural commodities trader, is a recent example of two companies that have signed such an agreement. In May 2017, Glencore undertook an informal approach to buying bears. Shortly thereafter, the parties agreed on a standstill agreement preventing Glencore from accumulating shares or making a formal bunge offer until a later date. – Any standstill agreement shall prevent the Parties from initiating proceedings during the currency of this Agreement. Consequently, the applicants were not entitled to initiate proceedings before 30 November 2016 without infringing the provisions of the third standstill agreement. The standstill agreements contained recitals indicating that the purpose of the agreements was to extend the period during which the applicants could bring legal proceedings. In contrast, the operational provisions of the status quo agreements dealt with the “suspension” of time and the “suspension of time”.
The applicants referred to the provisions of the operative part and argued that the standstill agreements resulted in a suspension of the limitation period, while the defendants referred to the recitals (and certain other factors), arguing that the standstill agreements were intended only to extend the time limit. The Kalat Khanate, on the western outskirts of Pakistan, has also decided to remain independent. It has signed a status quo agreement with Pakistan. On 15 August, the State of Junagadh concluded the instrument of accession and the status quo agreement with Pakistan. It was adopted by Pakistan on 13 September. [5] Junagadh was the only state to declare Pakistan`s membership until August 15. [6] A standstill agreement may preserve the Claimant`s position of limitation by suspending or extending the time limit. Where the standstill agreement results in a suspension of the time limit, the applicant shall, on expiry of the standstill period, have the same period for asserting his claim as at the time of the agreement. If the standstill agreement merely extends the time limit, the applicant must bring an action after the expiry of the standstill period. The new delegation obtained only minor amendments to the old draft agreement. [12] He determined that all the administrative agreements and arrangements that existed at the time between the British Crown and Nizam would be maintained with the Indian government.
These include defence, foreign affairs and communication (the three themes normally addressed in the Instrument of Accession). Agents would be exchanged between Hyderabad and India. The Indian government has agreed to relinquish the functions of Paramountcy. The standstill agreement is expected to remain in force for a period of one year. [13] The agreement was signed by Nizam on November 29, 1947. [14] There is another type of standstill agreement when two or more parties agree not to deal with other parties on a given issue for a given period of time. For example, as part of a negotiation for a merger or takeover of target buyers and potential buyers, they may agree not to solicit or participate in acquisitions with other parties. .
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