RT Journal Article
SR Electronic
T1 Trying to Match SOX
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 20
OP 27
DO 10.3905/jpe.2005.490413
VO 8
IS 2
A1 James B. Shein
YR 2005
UL https://pm-research.com/content/8/2/20.abstract
AB Directors of public and private companies face increased scrutiny and potential attacks on several fronts. Those include 1) government enforcers and plaintiffs taking directors' personal assets; 2) governance reforms enacted at the state and federal level; 3) court rulings which strip directors of the attorney-client privilege; 4) attacks against the safe harbor of the business judgment rule; and 5) insurers trying to rescind directors' insurance policies. Directors can take steps to protect themselves while still meeting the higher standards. These include hiring independent counsel for non-management directors, restructuring the D&O insurance program, and taking particular actions if the company winds up in bankruptcy.