The Revlon duty can be summed up as:
A) blocking all unwanted takeover attempts.
B) controlling the corporation in a fair,just,and equitable manner.
C) maximization of the company's value at a sale for the stockholders' benefit.
D) ensuring minority shareholder representation to vote a certain percentage of overall shares.

Question

Quizplus · Accepted Answer

The Revlon duty refers to the responsibility of a company's board of directors to maximize the company's value for the benefit of its shareholders when the company is up for sale. This concept arises from a landmark case involving Revlon, where the court held that in the context of a sale or change of control, the directors' role shifts from preserving the corporate entity to maximizing the company's value for the shareholders' benefit.

The Revlon Duty Can Be Summed Up As