What is the “Entire Fairness” Standard in Delaware Corporate Law?

What is the “Entire Fairness” Standard in Delaware Corporate Law?

The entire fairness standard is the strictest and most defendant-unfriendly standard of judicial review in Delaware corporate law. Delaware courts apply it when a corporate transaction (such as executive compensation, mergers, or squeeze-outs) involves a conflict of interest—most commonly when a controlling shareholder or a conflicted board stands on both sides of the deal. Unlike…