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The Illusion Of The Enhanced Unocal Standard, Adebukola A. Mabadeje

Adebukola A Mabadeje

From the time of the Delaware Supreme Court’s 1985 decision in the case of Unocal Corporation v. Mesa Petroleum Co., the word ‘Unocal’ has taken on a meaning of its own. Once simply the name of a corporation, it now signifies the test or principle developed in that case to wit: because of the omnipresent spectre of self-interest where the board of directors of a corporation adopts a defensive response to a hostile takeover offer, in order to be afforded the protection of the business judgment rule, the directors of such a company must have clearly identified that the offer …