Bancroft rule

The Bancroft Rule is a rule that explains when a company can buy another company. The Bancroft Rule says that a company that wants to buy another company can only do so if it agrees to keep the same owners, or shareholders, as the company being bought. This means that the new company must agree to keep the people who already own the company being bought as owners of both companies. This rule is meant to protect the interests of the people who already own the company being bought.