"露华浓"规则

名词

neolog

Revlon rule

noun

Comparative law notes

Established in the case Revlon, Inc. v. MacAndrews & Forbes Holdings, Inc., before the Delaware Supreme Court, the Revlon rule states that a company's board of directors has to make a reasonable effort to obtain the highest value for the company, for the interests of the shareholders, when a hostile takeover is imminent.

Definitions of Revlon rule

(US) a requirement that a company's board of directors must act in the best interests of shareholders if the company is to be sold

The Revlon rule, based on the decision in Revlon v. MacAndrews & Forbes, suggests that where a target is about to be sold, the issue before the directors no longer is whether the company should be sold at all but how to obtain the best deal possible for the shareholders.