The International Corporate Governance Network conference produced tough debate on legal action, shareholder voting, JP Morgan’s Jamie Dimon and audit committees.
In a robust debate about the wisdom of using litigation to enforce corporate governance standards, Colin Melvin, chief executive of Hermes Equity Ownership Services, made clear his opposition to legal action as a “normal” way of dealing with companies coming off their governance rails. According to Melvin, for shareholders to sue companies in which they hold stocks is to effectively sue themselves.
True change, he said, comes through shareholders and boards aligning their interests. Legal actions are a distraction for everyone, in particular company executives who must still run the company. Launching litigation should be a
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