The European Commission’s report on the implementation of the Takeover Bids Directive has revealed that the objective of creating efficient EU takeover mechanisms has not been attained. The Directive's key provisions on "board neutrality" and "breakthrough" aim to facilitate EU takeovers by limiting the effect of pre-bid and post-bid takeover defences such as share transfer restrictions and share buybacks. However, Member States can make the application of these rules optional and apply the "reciprocal rule" against a bidder not subject to the “board neutrality” and/or “breakthrough” rules. Member States' use of these options has led to modest or no progress in the EU takeover market.