Davis Discusses Possible Implications of Public Allegations of Misconduct Against Board Directors

Partner Gardner Davis was quoted in an article in Agenda, “Allegations Can Put Board Seats on the Line,” about the potential impact that public litigation may have on a board director’s reputation and ability to carry out his or her responsibilities.

Davis said there is an important distinction when claims are made against directors in the course of litigation. “From the director’s perspective, the critical issue is whether they made a mistake of business judgment, as opposed to an allegation which goes to the director’s integrity, such as self-dealing or putting the director’s interests ahead of the shareholders’ interests,” he said.

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