To stay ahead of the feds, companies need to monitor their own data for possible compliance problems. Congress may soon give companies better visibility into their shareholder bases, including derivatives positions.
In this issue of The Informed Board we also take stock of the Biden administration’s dramatic reorientation of antitrust enforcement, and provide guides for directors on how to cope with accusations against senior executives and how to ensure that a shareholder records demand doesn’t result in the disclosure of casual communications.
Corporate compliance systems need to adapt to a world where enforcement agencies are increasingly adept at using sophisticated data analytics to spot violations.
When senior executives are accused of misconduct, directors are thrust into the center of the crisis, with pressure to make quick decisions. Boards need a clear game plan to ensure the allegations are addressed and to minimize legal, regulatory, financial and reputational harm.
SEC veteran Raquel Fox explains how a bill in Congress would require investment funds to disclose their derivative positions and what the SEC may do to address perceived abuses by directors and officers of pre-scheduled stock sales plans.
Progressives in the Biden administration are reshaping antitrust policy through key appointments and an executive order that aims to increase competition across the economy, not just in the tech sector. Expect more scrutiny of mergers and employment practices, in particular.
As plaintiffs have switched litigation strategies and Delaware courts have expanded stockholders’ rights to seek company records, boards need to be mindful of the changes and assess the way they communicate and record board decision-making.