January 19, 2004

Throwing In A Little Corporate Governance III

The Chicago Tribune has a feature article (free regist. req'd) on the recent trend of requiring corporate governance reforms as part of the settlement of shareholder litigation. The article contains a list of prominent examples, including the Hanover Compressor settlement. (The 10b-5 Daily most recently posted about this issue here.)

Quote of note: "Experts said companies' willingness to make governance changes often depends on the situation. Firms dominated by a controlling shareholder or founding family, they said, are more likely to resist what they deem to be interference. Plaintiffs are more likely to succeed, experts said, in the worst cases of inattentive boards and companies that have cooked the books."

Posted by Lyle Roberts at January 19, 2004 7:33 PM | TrackBack
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