Partner Gardner Davis is quoted in a Corporate Secretary
article, “Avoiding Checkmate: How Boards Can Prepare For Activists
,” about what companies can do to stave off or deal with an activist approach.
Davis said that many public companies go through simulations on how to respond to an activist and have completed related assessments, sometimes hiring outside experts – including activists - to carry out the assessments for them. He also said such assessments should be updated each year to reflect changing conditions at the company itself, changes relative to its peers and changing best practices.
“No directors should get on-the-job training in real time,” he added.