ISS, Rights Plans and the Impact of the COVID-19 Pandemic
April 10, 2020
This week, ISS acknowledged that in the current environment, implementing a rights plan can be an appropriate action to protect against the threat of opportunistic acquisitions. This acknowledgment provides useful guidance to companies considering a rights plan adoption in light of the risks posed by the pandemic and the resulting market dislocation.
As corporate boards of directors and management teams confront the daily challenges arising from the coronavirus/COVID-19 crisis, they also should be considering the issues that may come up in the near future, including the increased vulnerability of many public companies to shareholder activist campaigns or unsolicited takeover activity. History suggests that the risk of such actions increases following significant market dislocations, such as those caused by the ongoing pandemic. Therefore, it is particularly appropriate in the current environment to refresh preparedness planning.
Thoughts for Boards of Directors on the COVID-19 Crisis
March 20, 2020
The global COVID-19 pandemic will test the oversight skills of boards of directors of companies of every size in every industry. Boards should be engaging in a discussion with their management teams about a wide range of issues stemming from the outbreak, both financial and operational, including liquidity issues, employees, customer and supply chain threats and impacts, increased cybersecurity vulnerabilities, and activism and takeover preparedness.