Draft Standstill Agreement

The complainants welcome the comments of the judges of the Court of Appeal. The order of court proceedings is often subject to significant legal costs and, once the proceedings have been rendered, they are subject to the timetable of the Court of Justice and, in the absence of a suspension agreement, they must be served within the time limits laid down in the Code of Civil Procedure. Once a claim has been served, the claimant expects a risk of adverse costs and can expect the costs to be borne by the defendant if the claim is subsequently closed or dismissed. There are other factors that may prevent a party from initiating proceedings, including the publication of the proceedings and the escalation of the dispute. The standstill agreement expands the possibility for the parties to consider alternative dispute resolution (ADR) and try to resolve their dispute outside of the judicial process. There are different ADR options, including mediation and arbitration. Sometimes a claim can only be resolved by going to court, but the comments of the Judge of the Court of Appeal should encourage the use of ADR. Last year, Walker Morris won a victory before the Court of Appeal in a case that highlighted the importance of properly working out your status quo agreement [1]. The subject once again made the headlines in the legal journals, in the case of Exsus Travel & Anor against Baker Tilly [2]. A standstill agreement can be used as a form of defense against a hostile acquisition when a target company obtains a promise from an unwelcoming bidder to limit the amount of shares the bidder buys or holds in the target company. By recovering the promise of the potential buyer, the target company will gain more time to set up other acquisition defenses. .

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