Unocal Corp. v. Mesa Petroleum Co.
Unocal established Delaware's enhanced-scrutiny framework for takeover defenses: the board must first show reasonable grounds for perceiving a threat to corporate policy and effectiveness, and then show that the response was proportionate to that threat.
Holding
Unocal established Delaware's enhanced-scrutiny framework for takeover defenses: the board must first show reasonable grounds for perceiving a threat to corporate policy and effectiveness, and then show that the response was proportionate to that threat.
Issues
hostile-takeover defensesenhanced scrutinyboard conflict of interest