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Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
9 / 2307 |
Essay's paper body
Mesa filed suit, alleging that the directors had violated their fiduciary duty by excluding Mesa from the exchange. The court concluded that the directors' actions were protected by the business judgment rule. The court recognized that in responding to hostile takeover bids the directors of a corporation can face a conflict between their own interests and the interests of the corporation and its shareholders...
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The court concluded that the directors' actions were protected by the business judgment rule. The court recognized that in responding to hostile takeover bids the directors of a corporation can face a conflict between their own interests and the interests of the corporation and its shareholders. The court stated that the Unocal directors had reasonable grounds to believe that a danger to the corporation existed because of Mesa's actions, and that the defensive actions they took were reasonable in relation to the threat they "rationally and reasonably" believed the offer posed...
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