Sinclair Oil Corp. v. Levien

Citation

280 A.2d 717 (Del. 1971)

Facts

Stub — to be completed.

Issue

Stub — to be completed.

Holding

Stub — to be completed.

Rule

Transactions between a parent and its subsidiary are subject to the intrinsic fairness standard only when the parent receives a benefit at the expense of the subsidiary’s minority shareholders; otherwise the business judgment rule applies.

Significance

Defined when parent-subsidiary transactions trigger entire fairness review vs. business judgment rule; key case for controlling shareholder duty of loyalty.

Courses