The board of directors: beware of those triggers that cause board change.

Abstract

A majority of director attention has recently been given to the problem of how a director discharges his duty to stockholders and protects himself from legal liabilities. In an effort to show their “due diligence” in exercising the care that “a prudent man would use in the conduct of his own affairs,” directors have begun to place increased emphasis on staying informed of the corporation's health and operations, as well as ensuring that publicly issued documents are accurate representations of the firm's status.