<![CDATA[While mergers and acquisitions have become an important tool for business expansion and corporate reorganization, the legal structure that governs acquisition transactions does not oblige the parties to undertake a full due diligence before closing an acquisition. This regulatory gap generates legal uncertainty since acquiring parties face potential concealed obligations, knowledge asymmetry and governance issues that may arise following the transfer of business control. This article analyzes the legal repercussions of the lack of an obligatory due diligence obligation in corporate acquisitions and discusses the need of responsive legal theory as a normative foundation for legal reform. The research is based on the normative legal technique with statutory, conceptual and comparative methods in an effort to analyze the sufficiency of the present legal framework and its ability to provide preventative legal protection. The results show that the lack of an obligatory due diligence obligation reduces the legal protection of purchasing shareholders, increases the possibility of post-acquisition challenges and does not promote openness, accountability and legal certainty in business transactions. The research also shows that responsive legal theory can serve as an acceptable foundation for the reconstruction of the acquisition regulations by incorporating mandated due diligence as a preventative legal mechanism that suits modern business practices. The study indicates that the introduction of a required due diligence obligation is necessary to provide legal clarity, to reduce the risk of transactions, to promote good corporate governance, and to provide balanced legal protection to all parties involved in corporate acquisitions.]]>
Copyrights © 2025
