Our Take: Prevention Is Ideal but Preparation Is Key Oppression claims against public companies can impose significant costs upon both the company itself and its officers and directors personally. A public company board can help protect itself against an oppression claim by – being aware of the circumstances that can give rise to oppression claims; – anticipating possible areas of concern or sensitivity and ensuring that the rights and legitimate expectations of potential complainants are afforded appropriate consideration in decision- making – even if such consideration is not always reciprocated; – considering and appropriately managing conflicts; – being mindful of and considering its prior public disclosure and established policies before making significant decisions or concluding important transactions; – carefully managing the flow of confidential and privileged information and documents; – maintaining adequate liability and D&O insurance; and – preparing and maintaining fair and accurate minutes of meetings.
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Governance Insights 2022
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