Partner Gardner Davis was quoted in an Agenda article, “Boards Re-Think ‘Entrenchment’ Provisions,” about how decades-old charter and bylaw provisions designed to thwart hostile takeovers may be opening up directors to more shareholders litigation.
Davis said companies enacted such provisions, which he called “shark repellents,” to make hostile takeovers more difficult to execute. But some state laws and court decisions have since restricted what companies can do to limit shareholders’ ability to remove directors.
“Best practice is to remove them, to get rid of any potential problem,” he said.
Davis said companies enacted such provisions, which he called “shark repellents,” to make hostile takeovers more difficult to execute. But some state laws and court decisions have since restricted what companies can do to limit shareholders’ ability to remove directors.
“Best practice is to remove them, to get rid of any potential problem,” he said.
People
Related News
August 1, 2025
In the News
Louis Lehot Assesses Figma IPO
Foley & Lardner LLP partner Louis Lehot commented on a major technology initial public offering in the Business Insider article, "Lina Kahn is taking a victory lap over the Figma IPO."
July 31, 2025
In the News
David Markey Assesses Shifting Landscape of Clean Energy Project Finance
Foley & Lardner LLP partner David Markey shared perspective in New Project Media on the evolving U.S. clean energy project financing landscape.
July 28, 2025
In the News
Whit Johnson Joins Utah Business Legal Roundtable
Foley & Lardner LLP partner Whit Johnson joined leading attorneys across Utah at a recent roundtable on the legal industry hosted by Utah Business.