The merits of talking instead of fighting are very clear when it comes to boardroom disputes and shareholders disputes. Even a simple shareholder dispute can incur six figure legal costs on each side. A new mediation service has been launched which might help in this process.
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When RBS required massive handouts from the state Sir Fred Goodwin’s position on the board was untenable. See previous post.
He departed with a big pay-off, which is the solution to many a boardroom dispute. The size of the pay-off (which included a reported £8m addition to a pension pot which would pay him £640k a year from the age of 50) has caused public outrage and the government looks set to tear up the rulebook in a way which should worry everybody.
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There is an interesting article in the latest edition of the Director Magazine about investor relations. It is a useful guide on ways to avoid shareholders disputes arising, of particular relevance to companies with a number of shareholders who may be at risk of shareholder activism.
Follow this link to read the article.
Once upon a time, when there was no such thing as personal computers, directors communicated mostly by talking to each other. Occasionally they sent memos but more often than not these were consigned to the bin after reading. The advent of email has changed the way directors communicate and this has changed the landscape for boardroom disputes and shareholder disputes.
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The latest twist in the Barclays boardroom dispute over the bank’s emergency fundraising is a “back us or sack us” ultimatum from the Board. This high stakes act calls the bluff of the angry shareholders.
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As discussed in previous posts - as a general rule directors and shareholders pull together in times of crisis and boardroom disputes or shareholder disputes are put on the back-burner. RBS are bucking the trend with what looks like a full blown boardroom dispute brewing up.
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