Boards of directors have fiduciary duties to act in the best interests of the company and its

shareholders. These duties become particularly relevant in the context of the markets for corporate
control, where disciplinary takeovers can occur.

The fiduciary duties boards of directors and how they influence decision- making during such takeover
scenarios, as well as their implication for shareholder value.

1. Duty of care:- directors have duty of care to make informed and prudent decisions. They must
exercise reasonable care, skill, and diligence in overseeing the affairs of the company . in the
context disciplinary takeovers, boards must carefully analyze and evaluate potential impact of
takeover on the company’s long term value and in the best interest of the shareholder.
2. Duty of loyalty:- directors have a duty of loyalty to act in the best interest of the company and
its shareholders. This duty requires directors to avoid conflicts of interest and to make
decision that prioritize the interests of the shareholders over their personal interest or
the interests of other stakeholders. In the context of disciplinary takeover, directors must
considers the potential benefits and risks to shareholders and evaluate takeover offers
objectively, without being unduly influenced by person biases or conflicts of interest.

These fiduciary duties influence decision- making during disciplinary takeovers in several ways:-

1 evaluation of takeover bids: directors must evaluate takeover bids based on their potential
impact on share holders value. They need to consider factors such as the offer price, the
strategic fit of the acquiring company, the potential synergies, and the implications for the
long- term growth and profitability of the company. Directors should also consider
alternative steerages to maximize shareholders value, such as seeking other potential buyers
or pursuing a standalone strategy.

2 negotiation and defense::- boards may engage in negotiations with potential acquirers to
secure a better deal for shareholders . they may explore alternatives to the initial offers, seek
higher prices, or negotiate for better term to enhance shareholders value. Additionally, boards
may employ defensive measures, such as implementing poison pills or seeking out white knight
acquirers, to protect against hostile takeovers that may not be in the best interest of
shareholders.

The implication of these fiduciary duties for shareholders value during disciplinary takeovers can
vary. If boards fulfill their duties effectively, they can help maximize shareholder value by
carefully evaluating takeover offers and negotiating favorable terms.
Economic exposure and transaction exposure are tow concepts used in the field of international
finance to assess and manage risks associated with foreign exchange rate fluctuations. While
they are related, they refer to different types of risks and have distinct characteristics.

1. transaction exposure: transaction exposure relates to the potential impact of currency

exchange rate fluctuation on individual transaction that involve the receipt or payment of
foreign currency. It arises from the time lag between the initiation and settlement of a
foreign currency.

Managing transaction exposure typically involves hedging techniques such as forward contracts,
futures contract ,potions, or other financial derivatives. These instruments allow companies to
lock in a specific exchange rate for future transactions ,reducing the risk of adverse currency
movement. Transaction exposure is generally consider a short-term risk as it pertains to specific
transaction and can be managed through financial instruments.

2.economicexposure: economic exposure, also kowne as operating exposure,refers to the

impact of exchange rate fluc