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Unocal test

Definition

A test developed in Unocal Corp. v. Mesa Petroleum Co., 493 A.2d 946 (Del.1985) and subsequent cases under which the court applies enhanced scrutiny to board actions taken to defend against a takeover threat. Under this test, defensive actions must not be preclusive or coercive, and they must also be reasonable and proportionate in relation to the threat posed.

Related Rules [?]