The role of a company’s auditors and accountants in shareholders disputes

A company’s accountants and auditors often play a key role in the business of smaller companies, acting as general advisers to the directors.  This can lead to problems in the event of a shareholder dispute or boardoom battle.

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The issues facing NEDs - a view from the FT

In an article in the FT Michael Kavanagh discusses the current challenges facing non-executive directors (with a few quotes from yours truly).

Click here to read the article.

All is not well in the boardroom of UK Plc

The UK cabinet is the most powerful boardroom in the UK.  Like all boardrooms it can be be the venue for bitter infighting as the recent attempted coup by Messrs Hoon and Hewitt neatly illustrates.

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A good old fashioned pub brawl

Mitchells & Butlers (”M&B”) owner of pub chain All Bar One has been airing its dirty linen in public.  Rebel shareholders at the company have seen their representatives kicked off the board in what has all the hallmarks of a classic boardroom dispute.

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More shareholders flexing their puny muscles

Marks & Spencer, which has suffered a spate of boardroom battles over the years, continues to provide examples of institutional shareholders attempting to exert control.

The latest shareholder intervention occurred at the recent AGM of the company when a group of institutional shareholders lead by local government pension funds sought to bring forward the appointment of an independent chairman.  Currently Sir Stuart Rose occupies both the roles of chief executive and chairman which on the face of it is a deviation from the corporate governance code promulgated by the Financial Reporting Council.

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The effect of Boardroom Disputes on relations with Banks

Boardroom disputes and shareholders disputes always have the potential to seriously damage the company in question.  One particular problem, particularly in the current financial climate, is that banks may use a dispute as a reason to terminate or curtail a companies banking facilities.  The problems can be even worse for listed companies.

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Keeping your head below the parapet

Another classic boardroom brawl in the Apprentice with contrasting fortunes for Ben and Philip.

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The Apprentice in the boardroom

As the latest series of The Apprentice gathers pace with an epic boardroom encounter involving Ben, Debra and the unfortunate Noorul, what does this series tell us about boardroom disputes.

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Insolvent companies - who is to blame!

As the recession grinds on a different kind of boardroom dispute is coming into play.   Whilst directors must act collectively, they ultimately take responsibility individually.  Where a company has become insolvent, or even where it has just lost value, the board, the shareholders or the liquidator may start looking for somebody to blame.  When this happens directors must make sure that it is not their head on the block.

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Fred the Shred and the NEDs

Sir Fred Goodwin is currently a one man article generator.   He has become a touchstone for all that went wrong with British banking.  As a spotlight is shone on his role in the failure of RBS it starts to show the likely shape of the next big boardroom disputes and shareholders disputes.

What is Sir Fred’s culpability in relation to what went wrong and what should his fellow directors have done?  As people look for who to blame and who to sue there is now a real focus on the duties of the directors on the Board of RBS (and other failed companies).   In particular, questions are being asked about the role of non-executive directors (NEDs) who appear to have failed to curb the excesses of the executive directors. Read more »