Williams Act

The Williams Act is a series of United States federal securities laws enacted in 1968 that are designed to increase the amount of information available to investors about corporate takeovers. The Williams Act was amended in 1970, 1976, 1982, and 1991.

The Williams Act is named after its principal sponsor, Congressman Harrison A. Williams Jr., a Democrat from New Jersey. The Williams Act was enacted in response to the perceived need for greater disclosure of information about corporate takeovers. The Williams Act was intended to prevent corporate takeovers from being accomplished through surprise or stealth.

The Williams Act has two main provisions:

• Section 13(d): This provision requires any person or group who acquires 5% or more of a company's stock to file a Schedule 13D with the Securities and Exchange Commission (SEC). The Schedule 13D must disclose the person or group's intentions with respect to the company.
• Section 14(d): This provision requires any person or group who makes a tender offer for a company's stock to file a Schedule 14D with the SEC. The Schedule 14D must disclose the terms of the tender offer and the person or group's intentions with respect to the company.

The Williams Act has been controversial since its enactment. Some critics argue that the Williams Act has made it more difficult for companies to be taken over. Other critics argue that the Williams Act has not been effective in preventing corporate takeovers.

Despite the controversy, the Williams Act remains a significant part of the United States securities laws. The Williams Act has been cited as a factor in the decline of hostile takeovers in the United States.