One of the principal roles of any board of directors is to make significant strategic decisions. In the post-pandemic economic climate, companies are facing numerous challenges, including cash shortages, executive turnover and a changing competitive landscape, all of which may force boards to rethink prior decisions and reposition the corporation’s strategy. These changes in direction can have a significant financial impact and may exacerbate disagreements between the board and stakeholders over the best course of action for the company, potentially setting the stage for an oppression claim. In this chapter, we provide an overview of oppression claims, the situations in which they arise against public companies and the proactive steps that boards can take to protect themselves.
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Governance Insights 2022
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