{"id":135198,"date":"2026-04-08T11:29:19","date_gmt":"2026-04-08T11:29:19","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=135198"},"modified":"2026-04-08T11:29:19","modified_gmt":"2026-04-08T11:29:19","slug":"georgia-mergers-acquisitions","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/georgia-mergers-acquisitions\/","title":{"rendered":"Georgia: Mergers &amp; Acquisitions"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-135198","comparative_guide","type-comparative_guide","status-publish","hentry","guides-mergers-acquisitions","jurisdictions-georgia"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Andersen in Georgia<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/09\/logo-1080x1080-1.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Andersen in Georgia<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/09\/logo-1080x1080-1.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Mergers &amp; Acquisitions laws and regulations applicable in Georgia<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key rules\/laws relevant to M&A and who are the key regulatory authorities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Mergers and acquisitions in Georgia are primarily governed by the Law of Georgia on Entrepreneurs. Public company transactions and takeover matters are additionally regulated by the Law of Georgia on Securities Market.<\/p>\n<p>Merger control is further governed by the Law of Georgia on Competition, which regulates concentrations and requires notification where turnover thresholds are met. Contractual aspects of transactions are subject to the Civil Code of Georgia, while tax consequences are governed by the Tax Code of Georgia.<\/p>\n<p>Regulatory oversight is divided among: the National Bank of Georgia, which supervises securities markets and financial institutions; and Georgian Competition and Consumer Agency, which reviews notifiable concentrations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the current state of the market?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Georgian M&amp;A market remains active, though relatively modest in scale compared to larger regional jurisdictions. The market is characterized by a predominance of private share acquisitions rather than public takeovers, reflecting concentrated ownership structures and a comparatively small capital market.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which market sectors have been particularly active recently?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Recent activity has been most visible in energy and renewable projects, particularly hydro, wind, and solar developments, reflecting Georgia\u2019s strategic position. The banking and financial services sector remains consistently active as well. Real estate and hospitality transactions have also remained significant, driven by tourism and regional investment. Additionally, there has been increasing activity in IT and digital services.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What do you believe will be the three most significant factors influencing M&A activity over the next 2 years?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>First, macroeconomic stability and Georgia\u2019s geopolitical positioning will remain central to investor confidence. Second, progress in Georgia\u2019s EU integration process is likely to have a substantial impact. Lastly, the development of domestic capital markets and access to financing will influence deal volume and structure.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key means of effecting the acquisition of a publicly traded company?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A publicly traded company in Georgia may be acquired through a voluntary tender offer addressed to shareholders, a mandatory tender offer triggered upon crossing certain ownership thresholds, a privately negotiated block trade followed by a public offer (where required), or through a statutory merger.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What information relating to a target company is publicly available and to what extent is a target company obliged to disclose diligence related information to a potential acquirer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Public companies are subject to mandatory disclosure of annual and interim financial statements, material events, and information concerning significant shareholdings. Corporate registration data, including directors and charter documents, is publicly accessible through the Public Registry.<\/p>\n<p>Beyond statutory disclosure obligations, there is no general legal duty requiring a target to provide due diligence information to a potential acquirer. Access to non-public information is typically governed by confidentiality agreements and subject to board discretion.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what level of detail is due diligence customarily undertaken?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Due diligence in Georgia is generally comprehensive and aligned with international practice, particularly in cross-border transactions. Legal due diligence typically covers corporate structure, title to shares, regulatory compliance, material contracts, employment matters, litigation exposure, licensing, and real estate ownership.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key decision-making bodies within a target company and what approval rights do shareholders have?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The legal entities in Georgia are authorized to have either a single-tier or a two-tier governance system. In case of single-tier system management, authority is vested in one or more directors who represent the company externally and are responsible for its day-to-day operations. A two-tier governance system typically involves a supervisory board overseeing a management board. This structure is more common in larger enterprises and regulated sectors.<\/p>\n<p>The supreme governing body is the General Meeting of Shareholders, which adopts resolutions on fundamental matters. Shareholder approval is required for fundamental corporate actions, including mergers, divisions, amendments to the charter, liquidation, and other significant structural changes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the duties of the directors and controlling shareholders of a target company?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Directors owe fiduciary duties of care and loyalty to the company. They are required to act in good faith, in the best interests of the company, and with the diligence of a reasonably prudent manager. Breach of these duties may result in personal liability.<\/p>\n<p>Controlling shareholders must refrain from abusing their dominant position and may be held liable where their actions cause harm to the company or minority shareholders.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do employees\/other stakeholders have any specific approval, consultation or other rights?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Georgian Labor Code, the employees do not possess transaction approval rights. However, in the case of mergers or transfers of undertaking, employment relationships generally continue with the successor entity, and employees must be informed accordingly. In such cases, the characteristics of the original employment relationship remains the same, unless the employer obtains employee\u2019s written consent.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what degree is conditionality an accepted market feature on acquisitions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Conditionality is a well-established feature of Georgian M&amp;A transactions. Conditions precedent commonly include merger control clearance, sectoral regulatory approvals, shareholder approval, and absence of material adverse change.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What steps can an acquirer of a target company take to secure deal exclusivity?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Georgian practice, exclusivity is primarily achieved through contractual arrangements rather than statutory mechanisms. An acquirer will typically require the target (and, where relevant, its controlling shareholders) to enter into an exclusivity for a defined period. Such provisions restrict the target from soliciting, initiating, or engaging in discussions with competing bidders.<\/p>\n<p>Confidentiality agreements are executed at an early stage and frequently contain standstill clauses preventing the potential acquirer from acquiring shares outside the negotiated process. In transactions involving concentrated ownership, irrevocable undertakings from key shareholders are a particularly effective method of securing transactional certainty.<\/p>\n<p>While Georgian law does not provide a codified takeover exclusivity regime, contractual freedom allows parties significant latitude in structuring binding pre-closing commitments, subject to general principles of good faith and fiduciary duties of directors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What other deal protection and costs coverage mechanisms are most frequently used by acquirers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Deal protection in Georgia is largely contractual in nature. Break fees and reverse break fees are legally permissible and may be agreed to allocate regulatory or transactional risk between the parties.<\/p>\n<p>Non-solicitation clauses and matching rights may also be included, allowing the initial bidder an opportunity to match competing offers. In private transactions, risk allocation is more commonly addressed through indemnification frameworks, escrow arrangements, deferred consideration structures, and purchase price adjustment mechanisms. These tools serve to manage valuation uncertainty and post-closing exposure.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which forms of consideration are most commonly used?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Cash consideration remains the dominant form of payment in Georgian M&amp;A transactions. This reflects both the strategic nature of most acquisitions and the relatively limited use of listed share consideration due to the small size of the domestic capital market.<\/p>\n<p>Share-for-share exchanges are primarily encountered in statutory mergers or internal group restructurings. In private transactions, parties may also employ mixed consideration structures, including deferred payments or earn-out arrangements, particularly where valuation depends on future performance metrics.<\/p>\n<p>The choice of consideration is largely driven by commercial negotiations, tax considerations, and financing availability, rather than regulatory constraint.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">At what ownership levels by an acquirer is public disclosure required (whether acquiring a target company as a whole or a minority stake)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the case of public companies, securities legislation imposes disclosure obligations when a shareholder acquires or disposes of voting rights crossing specified thresholds. These thresholds typically include 5%, 10%, 25%, 50%, and 75% of voting rights.<\/p>\n<p>Upon reaching or exceeding a control threshold, the acquirer may also incur an obligation to launch a mandatory tender offer. Disclosure is designed to ensure market transparency and protect minority shareholders by informing them of material changes in ownership structure.<\/p>\n<p>Private companies are not subject to comparable market disclosure requirements, though corporate registry filings may be required for specific companies operating in certain fields.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">At what stage of negotiation is public disclosure required or customary?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Public disclosure is generally required when a binding agreement has been executed or when a shareholder crosses a statutory reporting threshold. Additionally, information constituting a material event under securities legislation must be disclosed promptly.<\/p>\n<p>There is no general obligation to disclose preliminary negotiations. In practice, parties seek to manage timing carefully to balance regulatory compliance with transactional confidentiality.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there any maximum time period for negotiations or due diligence?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgian law does not impose a statutory maximum duration for negotiations or due diligence. The length of the process is determined contractually and depends on transaction complexity, regulatory approvals, and sector-specific considerations. Long-stop dates are commonly agreed in transaction documentation to provide certainty and allocate risk in the event that conditions precedent are not satisfied within a specified timeframe.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there any maximum time period between announcement of a transaction and completion of a transaction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no general statutory maximum period between announcement and completion of a transaction. However, tender offers are subject to specific procedural timelines under securities legislation, including prescribed acceptance periods and settlement deadlines.<\/p>\n<p>In the case of statutory mergers, corporate resolutions and subsequent registration with the Public Registry must occur within legally defined procedural timeframes. Outside these contexts, the period between signing and closing is governed by contractual arrangements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any circumstances where a minimum price may be set for the shares in a target company?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Minimum pricing requirements arise principally in the context of mandatory tender offers. Securities legislation may require that the offer price not be lower than the highest price paid by the acquirer for shares in the target during a defined look-back period. This mechanism protects minority shareholders from coercive or discriminatory pricing practices.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible for target companies to provide financial assistance?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgian corporate law imposes restrictions on financial assistance by joint stock companies in connection with the acquisition of their own shares. These limitations reflect capital maintenance principles designed to protect creditors and minority shareholders.<\/p>\n<p>While certain corporate actions may be structured within lawful boundaries, any arrangement that effectively results in the company financing the purchase of its own shares must comply with statutory safeguards. Limited liability companies are subject to more flexible rules, though general principles of creditor protection and fiduciary duties remain applicable.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which governing law is customarily used on acquisitions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Domestic transactions involving Georgian entities are typically governed by Georgian law, particularly with respect to corporate and regulatory matters, which are subject to mandatory local provisions.<\/p>\n<p>In cross-border transactions, it is common for share purchase agreements to be governed by foreign laws, especially where international investors are involved. Nevertheless, matters concerning corporate validity, share transfer formalities, and registration requirements remain governed by Georgian law as the lex societatis.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What public-facing documentation must a buyer produce in connection with the acquisition of a listed company?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the acquisition of a listed company, the buyer may be required to publish a tender offer document detailing the terms and conditions of the offer, including pricing, financing arrangements, and procedural information. Public announcements and disclosure of material information must be made in accordance with the Law of Georgia on Securities.<\/p>\n<p>Where consideration consists of newly issued securities, a prospectus or equivalent disclosure document may be required. Ongoing reporting obligations may also arise upon acquisition of significant shareholdings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What formalities are required in order to document a transfer of shares, including any local transfer taxes or duties?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For non-public companies, share transfers must be documented in writing and registered with the National Agency of Public Registry. Depending on the company\u2019s charter, notarisation may be required. The transfer becomes effective vis-\u00e0-vis third parties upon registration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are hostile acquisitions a common feature?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Hostile acquisitions are relatively uncommon in Georgia. This is largely attributable to concentrated ownership structures, and the comparatively small size of the capital market. Most transactions are negotiated with controlling shareholders.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What protections do directors of a target company have against a hostile approach?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Directors are protected by the statutory framework governing fiduciary duties. They are required to act in the best interests of the company and may issue reasoned opinions regarding a proposed offer. They may also seek alternative proposals where consistent with their duties.<\/p>\n<p>Unlike certain jurisdictions, Georgian law does not provide for extensive structural anti-takeover devices such as poison pills. Defensive measures must remain consistent with directors\u2019 duties of loyalty and care and may be subject to judicial review.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there circumstances where a buyer may have to make a mandatory or compulsory offer for a target company?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A mandatory tender offer obligation generally arises when an acquirer obtains control of a public company, as defined under securities legislation. Where a person or a group of persons acquires securities resulting in control of voting shares of a public company, they are required to make a mandatory tender offer to all remaining shareholders. This mandatory tender offer requirement is designed to ensure that minority shareholders have the opportunity to exit the company on fair terms when a change of control occurs.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If an acquirer does not obtain full control of a target company, what rights do minority shareholders enjoy?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If an acquirer does not obtain full control of a target company minority shareholders benefit from statutory information rights, participation rights at general meetings, and, subject to certain limitations, pre-emptive rights in capital increases.<\/p>\n<p>Specifically, they enjoy following rights:<\/p>\n<p><strong>Notification requirements:<\/strong> Holders of voting securities must notify both the National Bank of Georgia and the issuer when their shareholding reaches, exceeds, or falls below certain threshold levels: 5%, 10%, 15%, 20%, 25%, 30%, 50%, and 75%. This notification obligation applies to both current and former holders when thresholds are crossed. These disclosure requirements help ensure transparency regarding significant shareholdings.<\/p>\n<p><strong>Related party transaction protections:<\/strong> The law imposes obligations regarding related party transactions. Persons holding 20% or more of a company&#8217;s voting shares may have a say in certain transactions. Persons who knew or should have known about their interest in a transaction but failed to disclose it, or who exercised voting rights in violation of applicable restrictions, are liable to compensate the company for resulting damages.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is a mechanism available to compulsorily acquire minority stakes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgian law provides a squeeze-out mechanism whereby a shareholder exceeding 95% ownership threshold may initiate compulsory acquisition of minority shares. However, such compulsory acquisition is permitted for joint stock companies. Moreover, the procedures are subject to fair compensation requirements and judicial oversight to safeguard minority interests.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">2463<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/135198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=135198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}