MLchartDataset catalogue

Enhanced scrutiny test

Term · Law · MLC-T-LAW-001873

A standard of judicial review in Delaware corporate law applied to board decisions taken in a takeover or change-of-control setting, most famously in the Unocal case. The directors must show they had reasonable grounds to perceive a threat to corporate policy and effectiveness, and that their defensive response was reasonable in relation to that threat. It is more demanding than the business judgment rule but less demanding than entire fairness.

Table 1. Record
IdentifierMLC-T-LAW-001873
FieldLaw
Record as JSON 
{
  "id": "MLC-T-LAW-001873",
  "term": "Enhanced scrutiny test",
  "field": "Law",
  "definition": "A standard of judicial review in Delaware corporate law applied to board decisions taken in a takeover or change-of-control setting, most famously in the Unocal case. The directors must show they had reasonable grounds to perceive a threat to corporate policy and effectiveness, and that their defensive response was reasonable in relation to that threat. It is more demanding than the business judgment rule but less demanding than entire fairness.",
  "url": "https://mlchart.com/terminology/law/enhanced-scrutiny-test/"
}

Record 1,762 of 5,441 in Law terminology (MLC-0107). Request the full dataset.