Close

Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.

×

Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

Trying Times: Activists Take To The Courts

Meet the new policemen of U.S. corporate governance: the nation’s judges.

Like it or not, shareholder activism to exert control over board behavior is migrating as never before to courtrooms, giving magistrates and juries unusual sway over how companies are run. Canny executives can take steps to avoid getting into plaintiff lawyers’ sites. But first, take a quick scan of the landscape unfolding in 2006.

Enron’s trial, of course, has grabbed headlines. So has its civil suit. But in its shadow are other mega-cases, the latest being Nortel Networks, the Canadian telecommunications firm. Earlier this year, management settled a class action for $2.4 billion in cash, one of the biggest ever money pots for a similar lawsuit. It turns out that governance was at the root of the problem—and formed part of the resolution.

...
Read this single article for $49, or click the subscribe button below to review subscription options.

Enjoy unlimited access to thousands of articles, browse five years of digital magazines, qualify for reduced admission to events, and more.