Corporate Governance Problems Facing the Energy Sector

Partners Craig B. Florence and Randy D. Gordon, members of the Firm’s Trial Practice Group, co-wrote an article for the Oil and Gas Financial Journal. Published July 19, the article is titled “Corporate Governance Problems Facing the Energy Sector.” An excerpt may be viewed below.

A director’s job is to maximize the value of the company she serves, and she can’t ordinarily do that well if she serves in another venture operating in the same domain. And she can’t even conceivably do that consistent with her duty of loyalty, if she tries the move without the permission of the company. Were the rules otherwise, we would quickly see a return to 19th century robber-baron “ethics,” in which officers and directors skimmed all corporate cream for themselves and left thin water for ordinary investors.